Adani to cut power supply to Bangladesh if tariffs are not settled by November 7: report

According to a Times of India (TOI) report, Adani Power has warned Bangladesh of a complete suspension of power supply by November 7 if arrears of around $850 million are not cleared.

After missing an earlier October 31 deadline, the Bangladesh Power Development Board (BPDB) tried to obtain a letter of credit worth $170 million through Krishi Bank, but it did not fulfill the conditions stipulated in their power purchase agreement, sources told TOI.

Delayed payments have already led Adani Power Jharkhand to cut power supplies to Bangladesh from October 31.

Adani’s Godda power plant produced only 724 megawatts (MW) of its installed capacity of 1,496 MW on Friday, according to Power Grid Bangladesh. Other major plants, including Payra, Rampal and SS Power I, also reported lower productivity due to fuel shortage, the report said.

Bangladesh has had problems with timely payments, partly due to a shortage of dollars, according to industry sources. According to a TOI report, Adani Power’s payouts have fluctuated between $20 million and $50 million in recent months, compared with monthly bills of $90 million to $100 million.

Soon after the overthrow of Sheikh Hasina’s government in Bangladesh, Adani began exploring the possibility of supplying electricity to the domestic market, given the steady growth in demand and guaranteed payments. The company has been asked to provide connection to the local power grid, which can be done through a substation at Lakisarai in Bihar, it said.