Adani plant to begin transmission from March
There is no scope of manipulation in coal pricing by Adani Power as the rate will be fixed as per the Newcastle Index, the main price reference for physical coal contracts in Asia, said Nasrul Hamid, the state minister for power, energy and mineral resources.
"We will get coal at a competitive price in the international market -- there is no scope of manipulation in the pricing," he said at a briefing held at the secretariat yesterday.
The coal price for the Adani Godda power plant will not be more than the Payra power plant, said Power Secretary Habibur Rahman, who was also present at the briefing.
Bangladesh Power Development Board (PDB) pays $245 per metric tonne for the coal used in the Payra power plant in Patuakhali, according to a report prepared by the Power Cell in January.
It pays $254.38 per metric tonne for the S Alam power plant in Chattogram's Banshkhali and the Rampal power plant in Bagerhat, and $270 for the Barishal 307MW coal-fired power plant, according to the report.
Recently, the government sought to revise the power purchase agreement signed with Adani Power in November 2017 after the Indian company quoted a high price for coal. The letter was sent following a request they received from Adani in relation to opening LCs (In India) to import coal.
"There is no scope for discount. The coal price for each power plant depends on the agreement and the index we are following according to the agreement," Hamid told The Daily Star yesterday.
Adani's coal price is valued at $347 for 4,600 calorific grade metric tonnes of coal, according to the Power Cell report.
When asked about the price disparity between the Adani and Payra power plants in the Power Cell report, Hamid said: "Why do you bother with the Power Cell? It's all about the power purchase agreement and the price of coal that day."
Hamid maintained that electricity transmission from the Godda plant would begin from the first week of March even though the Indian financial daily Mint yesterday reported that there would be a delay of another six months as the transmission line is yet to be completed.
Quoting a senior official from Adani's lenders, Indian business news site MoneyControl said a delay is likely after PDB voiced concerns regarding the electricity price.
"We have fixed the commercial operations date on February 28 and all are fixed to get electricity by the first week of March," Nasrul said.
M Shamsul Alam, senior vice-president of the Consumers' Association of Bangladesh, criticised the overall deal with Adani.
"The agreement has been made to favour Adani, turning a blind eye towards stakeholders who will be consuming the electricity," he said.
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