Adani Power To Cut Bangladesh's Power Supply If Dues Not Cleared By 7 Nov: Report

Adani Power Jharkhand or APJL, a wholly-owned subsidiary of Adani Power, has warned to cut off electricity supply to Bangladesh unless outstanding dues of approximately $850 million are paid by 7 November, a leading news media reported. 

Several media reports stated that APJL has drastically reduced its power supply to Bangladesh, operating at less than half capacity, due to unresolved payments totaling USD 846 million. Recent figures from Power Grid Bangladesh PLC indicate a significant drop in output from the Adani plant, resulting in a 1,600 MW shortfall. 

Specifically, the 1,496 MW plant was only generating 700 MW from a single operational unit as of Thursday night, as per the Daily Star, a Bangladeshi daily newspaper.

Earlier in August, Adani Power said it was committed to supplying electricity to Bangladesh, saying a recent amendment to power export rules does not affect its existing contract. The amendment by the government facilitates connectivity to the Indian grid but does not impose any obligation on India to buy electricity, Adani Power said in a statement.

"Adani Power is committed to fulfil contractual obligations as per Bangladesh Power Development Board's demand schedule and provisions of the power purchase agreement and would look forward to continuing reciprocal fulfilment," Adani Power said. Adani Power's 1,600 megawatt (MW) Godda plant in Jharkhand state is the only one in India under contract to export 100 per cent of its power to a neighbouring country.

In September, media reports stated that aimed at knowing the terms of agreements and checking whether the price being paid for power is justified, the Indian businesses are set to be scrutinised by the interim government of Bangladesh.

As per the media reports, a top member of the interim government who did not wish to be named stated that the scrutiny of Indian businesses, including the Adani Group will be done in order to understand the kind of contracts that have been signed, its terms and conditions. The member highlighted that the country cannot have a foreign company not follow the law.