Adani Power is reportedly charging Bangladesh significantly more for coal and capacity charges than the international market rate. Despite receiving tax and tariff exemptions as a Special Economic Zone (SEZ) in India, Adani is demanding up to 30% more per ton of coal than the Indonesian Coal Index price. In 2021, the Bangladesh Power Development Board (PDB) initially opposed Adani’s high coal prices but was forced to negotiate a reduced rate. Adani’s current pricing for 4,600 kcal coal is $93.25 per ton, compared to the $72.24 per ton index price. Additionally, Adani benefits from substantial tax exemptions on equipment and coal imports, amounting to a potential saving of approximately $1 billion over 25 years. Despite these exemptions, Adani does not offer any discount on electricity sales to Bangladesh. The PDB has raised concerns over Adani’s pricing practices and the lack of transparency regarding the SEZ benefits, with ongoing discussions to address these issues.
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