No power supply to Bangladesh due to non-payment of dues
Adani Power Jharkhand Limited (APJL), a subsidiary of Adani Power, has reduced its electricity supply to Bangladesh due to outstanding dues totalling over INR 7000 Crores.
The power supply was cut by half, with the plant now generating approximately 700 megawatts from a capacity of 1,496 MW.
This reduction has led to a reported power shortfall of over 1,600 MW in Bangladesh.
This action follows a letter from Adani Power demanding payment by October 30, warning that failure to do so would result in a suspension of power supply under the terms of their Power Purchase Agreement (PPA).
Despite some payments made previously, the Bangladesh Power Development Board (PDB) has struggled to keep up with rising charges from Adani, which have increased to over INR 185 Crores weekly, while PDB has been paying around only INR 150 Crores.
This shortfall has contributed to the growing unpaid dues.The increase in charges is partly attributed to the end of a one-year supplementary deal that had temporarily lowered coal prices.
Adani has resumed pricing based on original agreements linked to international coal indices, which have driven costs higher.
The ongoing financial strain has hindered APJL’s ability to manage working capital for coal suppliers and operational expenses, exacerbated by the lack of a letter of credit from Bangladesh Krishi Bank for an amount exceeding INR 1445 Crores.
Gautam Adani, chairman of the Adani Group, has reached out to Bangladesh’s interim government, led by Muhammad Yunus, urging prompt resolution of the outstanding payments.
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