Bangladesh’s caretaker government is reportedly hoping to renegotiate a 2017 multibillion-dollar deal with Adani to supply power from its coal plant in eastern India. The deal was awarded by then-Prime Minister Sheikh Hasina without a tender process, and cost Bangladesh far more than its other coal-fired power plants. The caretaker government has accused Adani Power of breaching the deal by withholding tax benefits that a central power plant in the deal received from New Delhi.

According to a Reuters report, Dhaka owes several million dollars for power that has already been supplied. However, both sides dispute the exact size of the bill. Bangladesh’s Energy Minister Muhammad Fouzul Kabir Khan said the country now has enough domestic capacity to cope without Adani’s supply.

According to the report, Bangladesh plans to reopen the 25-year-old deal and hopes to use the fallout from the US indictment in a $265 million bribery scheme to push for a resolution. Adani Group had denied the charges and called them baseless.

A spokesman for Adani Power said they fulfilled all contractual obligations and had no indication that Bangladesh was revising the contract.

Delhi had declared Adani Power’s Godda plant to run on imported coal and was built to serve Bangladesh as part of a special economic zone. By virtue of this, he enjoyed incentives such as exemptions from income tax and other levies.

The power supplier was to inform Bangladesh of changes in the tax status of the plant and transfer the benefit of the Indian government’s tax exemption, according to the contract signed between Adani Power and the Energy Development Board of Bangladesh (BPDB) in the state. 2017. However, the company failed to do so, according to BPDB’s letters, urging it to remit the profits.

BPDB officials told the news agency they never received a response from the company. Bangladesh anticipates potential savings of about $28.6 million.

Meanwhile, on October 31, Adani Power halved power supply to its Godda plant, citing the payment dispute with Bangladesh based on the calculation of power tariffs. According to Reuers, Adani Power rejected a BPDB request to extend a rebate that had been offered until May. This discount resulted in a savings of approximately $13 million for Bangladesh. Adani Power stated that it would not consider any further rebates until the payment issue was resolved.

Adani Power claims it is owed $900 million, while the BPDB estimates the arrears to be around $650 million.

The reduction in energy supply has particularly frustrated Bangladesh. BPDB chairman Md Rezaul Karim expressed outrage that the move followed Dhaka’s remittance of $97 million to Adani Power in October, marking the highest monthly payment made this year.