Bangladesh Accelerates Payment To Adani Power After Supply Cut

Days after Adani Power halved its electricity exports to the nation, Bangladesh is accelerating payment of more than USD 800 million it owes to the group, ahead of the 7 November deadline that was set by the Indian group, as reported by Reuters. Adani Power, which exports power to Dhaka from its 1,600 megawatt (MW) Godda plant in Jharkhand, had set the deadline for the receipt of dues.

As per Reuters, Adani Power faces challenges in importing the coal required to generate power at the plant. The company decided to reduce the power supply to Bangladesh to 700 to 800 MW this month after the latter failed to pay the dues of USD 846 million.

As far as the struggles of Bangladesh are concerned, the Russia-Ukraine crisis which led to costly fuel and goods imports added to the country’s struggles in clearing dues. The recent political turmoil after the former Prime Minister Sheikh Hasina was ousted from power also compounded its troubles.

Reuters reported that Muhammed Fouzul Kabir Khan, the power and energy adviser in the interim government of Bangladesh said that they cleared USD 96 million last month and a letter of credit has been opened for an additional payment of USD 170 million this month. As per Reuters, Bangladesh was scrutinising its contract with Adani Power as it was costing Bangladesh a rate nearly 27 per cent higher than those of India’s other private producers.