Top DGPC officials say it is too early to assess the impact of the corruption charges against Adani Group’s chairman, Gautam Adani, on the ongoing negotiations

Dechen Dolkar

Despite the signing of a Memorandum of Understanding (MoU) in June 2024, the agreement between Druk Green Power Corporation (DGPC) and the Adani Group for the Wangchhu Hydropower Project is not yet finalised.

The MoU, which serves as a time-bound expression of intent, does not yet bind either party to a formal agreement.

Two potential options are being considered for the Wangchhu project: a 570 MW run-of-the-river scheme or a 900 MW reservoir-based scheme.

According to sources, although preliminary discussions have taken place, a concrete agreement has not yet been reached.

Sources said that Adani Group is seeking a 70 percent majority stake in the project, along with an extended concession period of more than 90 years, in contrast to the standard 30-year concession period.

Meanwhile, the Adani Group faces ongoing legal challenges. International media have reported that Gautam Adani, the group’s billionaire chairperson, is likely to undergo a lengthy trial in the United States over charges of involvement in a multi-million-dollar fraud and bribery scheme.

The U.S. Department of Justice and the Securities and Exchange Commission (SEC) have accused Adani and his co-defendants of paying over USD 250 million in bribes to Indian officials to secure solar contracts valued at an estimated USD 2 billion over a 20-year period.

When asked about the potential impact of these developments on Bhutan’s relationship with the Adani Group and future investments, a DGPC official stated that it is too early to comment on a case filed in another country.

It was also reported that Kenya recently canceled a multimillion-dollar airport expansion and energy deals with Gautam Adani following the U.S. bribery and fraud indictments against one of Asia’s richest men.

In response, the Adani Group has clarified that it had not entered into any binding agreement to operate Kenya’s main airport.

Regarding the recently signed pact to build and operate key electricity transmission lines in Kenya for 30 years, the Group said that the project does not fall within the scope of the Securities and Exchange Board of India disclosure regulations, and therefore, no disclosure was required regarding its cancellation.