Months Before Polls, Assam Govt Fast-Tracks Adani Power Deal Despite Surplus Risks, Potentially Burdening Taxpayers with Thousands of Crores in Unused Electricity Costs

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An investigative report from The Reporters’ Collective reveals that the Assam Government signed an unnecessary contract with Adani Group for procuring power in the state, much larger than what would be needed. The report, published on March 17, 2026, lists out government documents accessed by the channel, that expose how the Himanta Biswa Sarma led BJP government in Assam displayed exaggerated power needs, and used manipulative loopholes to oblige the contract. 

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Adani Power Signs Energy Contract With Assam For Developing 3,200 MW Power Plant

Not surprisingly, the contract was signed in November 2025, months before Assam goes to polls. Elections in Assam are scheduled on April 9, 2026, with counting conducted and results declared on May 4, 2026. The calculations show that the state government could pay more than ₹12,500 crores, as high as ₹19,000 crores over five years, if the surplus electricity is not used. 

The money would be deducted from the taxpayers’ pockets, and the deal is structured as a “take-or-pay” contract, a common arrangement in the power sector that obligates the buyer to pay for a fixed quantity of electricity regardless of actual consumption. “These calculations are based on documents of the Assam government and the Central Electricity Authority. The estimate is conservative and relies on the Assam government’s claim that the state will witness high economic growth in the coming decade”, according to the report.

The agreement, where Assam has committed to buying power until 2035–36, involves the procurement of around 3,200 megawatts (MW) of electricity. According to the report, initial biddings for 3,200 MW of power were auctioned by five companies, Adani Power Limited, JSW Energy Limited, Lalitpur Power Generation Company Limited, MB Power (Madhya Pradesh) Limited and Torrent Power Limited on October 10, 2025. Adani Power offered the lowest price, but there was another round of bidding during which Adani Power secured the contract, with the lowest rate of ₹6.30 kilo Watt hour (kWh). 

However, this rate was perceived as high by the Assam Electricity Regulatory Commission, which sent its considerations to the Assam Power Distribution Company Limited (APDCL). Subsequently, the APDCL reviewed the rate with Adani Power, but the latter was successful in convincing the former of the price, citing Assam’s difficult terrain and rising equipment costs.

Assam Electricity Commission Criticises The Contract

Following this, on November 21, 2025, the Coordination Committee of Electricity Employees, Engineers and Pensioners sent a formal complaint to the APDCL chairperson, objecting to the project. 

The committee demanded to stop/suspend (instead of halt) all proceedings on the 3200 MW (Dhubri) Power Project pending consultations with stakeholder associations, unions, pensioners and the public of Assam. The letter states that the Letter of Award (LOA) to the Adani Group for the said project, “appears to have been taken without adequate transparency, public awareness or consultation with the stakeholder associations of the erstwhile ASEB, APDCL, APGCL, AEGCL, pensioners and the people of Assam.”

The committee states that Assam's current peak electricity demand is only about 2500 MW. They question why a 3200 MW plant is needed and worry that leftover power will be sold at a loss. They fear that the extra power will be sold at a heavy financial loss, a burden that will eventually fall on everyday citizens through increased electricity bills. 

However, when the APDCL forwarded the complaint to Assam’s Power Department, the latter responded with a letter titled: “State government support to compensate loss on account of surplus power due to Adani Power Limited”. According to the letter accessed by The Reporters’ Collective, the letter stated that there was no possibility of surplus power. However, it also mentioned that any kind of loss happening due to surplus power will be compensated accordingly to the APDCL, by the state’s government. 

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This saving of the Adani Power project by the Assam Government lays forward a blunt question: Who is going to bear the brunt for massive expenses? The answer is, the public, as the state exchequer will pay for the financial losses the government will bear. While the Assam government has not publicly elaborated on the justification for the scale and terms of the agreement, the report underscores the need for greater transparency and scrutiny in decisions involving long-term public expenditure.

As questions continue to be raised, the deal is likely to remain under regulatory and public scrutiny, particularly over its long-term economic viability and its potential impact on consumers in the state. 

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