Fact Check: Bangladesh Power Deal With Chinese Firm Predates Indian Tariff Dispute by Years

Misleading claims circulating across social media platforms have falsely alleged that Bangladesh’s prime minister agreed to buy expensive electricity from a Chinese-built power plant in a retaliatory move against India. The viral posts suggest that Dhaka chose to pay significantly higher energy rates to China after New Delhi proposed an additional fee on power exports in August 2026.

The online controversy gained traction following the publication of a Bengali-language graphic shared on the official Facebook page of the Indian newspaper Anandabazar Patrika in early September 2026. The post claimed that Bangladesh, furious over a minor price adjustment from India, decided to purchase Chinese-generated electricity at a 127 percent higher cost simply to teach its neighboring country a lesson.

Accompanying the viral graphic was an image of Bangladeshi Prime Minister Tarique Rahman flanked by the national flags of India and China. The accompanying report asserted that Rahman had initiated the power plant project in the Aminbazar area of Dhaka and awarded the contract to a Chinese enterprise in direct reaction to India's tariff proposal.

However, an examination of official records and historical reports confirms that these claims are entirely false. The electricity purchase agreement for the Chinese-built facility was finalized and signed in 2021. This was years before India suggested its additional fee in August 2026 and well before Rahman assumed the office of prime minister.

The dispute that triggered the online commentary began in August 2026, when India's state-owned power company, NTPC Vidyut Vyapar Nigam, proposed an extra fee of 0.01 Indian rupee (approximately 0.01 US cent) per unit on cross-border electricity sales to Bangladesh. The proposed charge was intended to cover grid maintenance and related sundry expenses incurred during transmission.

Following discussions between both nations, Bangladeshi media reported that an agreement was successfully reached to reduce the newly proposed charge by half, effectively resolving the administrative pricing dispute over cross-border power transmission.

Despite this resolution, misleading posts framed the situation as a dramatic diplomatic fallout. Online critics claimed Dhaka was paying 25 takas (around $0.20) per unit for power from the newly contracted Aminbazar plant, while imported power from the Indian state company cost merely 11 takas ($0.08) per unit, branding the difference an unnecessary 127 percent premium paid to Beijing.

Official statistics from the Bangladesh Power Development Board (BPDB) offer additional context regarding import costs. According to the BPDB’s latest annual report, Bangladesh imported electricity from India at an average rate of 11.72 takas (about $0.09) per unit during the 2024-25 fiscal year, which roughly aligns with the import figures cited in the viral posts.

Nevertheless, the timeline of the Chinese energy project completely disproves any connection to the recent Indian tariff discussions. The United News of Bangladesh reported on December 1, 2021, that the government had formally awarded the contract for the Aminbazar waste-to-power plant to China Machinery Engineering Corporation.

Under the terms established in the December 2021 agreement, the Bangladeshi government committed to purchasing electricity generated by the facility at a rate of 21.78 US cents per unit over a 25-year operational period. At the time of signing, that rate translated to 18.295 takas per unit.

Fluctuations in foreign exchange rates over subsequent years caused that dollar-denominated figure to rise in local currency value. Calculations confirm that the agreed-upon 21.78 US cents per unit is equivalent to roughly 25 takas at September 2026 exchange rates, accounting for the tariff currently being cited in the misleading reports.

Energy officials have also pointed out that comparing the two power arrangements is fundamentally flawed. Md Shameem Hassan, the public relations director at the BPDB, stated that the minor Indian fee adjustment and the Chinese plant tariff involve completely distinct mechanisms.

Hassan explained that the issue regarding Indian electricity involves a wheeling charge, which is a fee associated with the transmission and maintenance of the power grid. In contrast, the Aminbazar facility’s agreement is a power purchase tariff for a specialized, capital-intensive waste-to-energy development. He emphasized that comparing an incremental grid transmission charge to the production tariff of a municipal waste facility is erroneous.

Government officials have also defended the environmental and operational value of the Aminbazar project. Mir Shahe Alam, the Minister of State for Local Government, Rural Development and Co-operatives, noted that the waste-to-energy facility is scheduled to commence commercial operations in 2028.

Alam underscored that the specialized plant is vital for addressing Dhaka's severe urban waste accumulation. While acknowledging that the per-unit power generation price may seem high compared to standard imports, he noted that the financial investment would be recovered through carbon credits, waste management savings, and long-term environmental remediation.

Ultimately, fact-checking demonstrates that Bangladesh's tariff for power from the Chinese-built Aminbazar plant was legally set nearly five years prior to India's fee proposal. The agreement reflects a pre-existing municipal waste solution rather than an impulsive diplomatic maneuver by the current administration.