Adani Halves Power Supply to Bangladesh Over $846M Unpaid Dues

4 Nov 2024 , 08:20 PM

Adani Power Jharkhand Ltd (APJL), a subsidiary of Adani Power, has cut half of its power supply to Bangladesh due to unpaid bills amounting to $846 million.

The APJL plant, originally producing 1,496 MW, has reduced output to around 700 MW, leading to a reported power deficit of over 1,600 MW in Bangladesh.

Bangladesh Power Development Board (PDB) has been making partial payments; however, charges from Adani increased in July, putting additional pressure on the PDB’s payments.

PDB has been paying approximately $18 million weekly, although current charges exceed $22 million, contributing to growing unpaid balances. Due to a US dollar shortage, Krishi Bank was unable to open a letter of credit for a recent payment submitted by the PDB.

After the expiration of a one-year supplementary deal, Adani resumed billing at rates set by the Power Purchase Agreement (PPA), with coal prices based on the Indonesian and Australian Newcastle coal indices. Adani reserves the right to seek capacity payments as per Section 13.2(1) of the PPA during the suspension period.

Gautam Adani has urged the interim government in Bangladesh, led by Nobel Laureate Prof. Muhammad Yunus, to clear the dues, emphasizing the need to resolve outstanding amounts promptly.