Adani Power warns Bangladesh of power supply discontinuation if dues not paid by Nov 7: Report

Adani Power in Bangladesh: Adani Power Jharkhand Limited (APJL), a subsidiary of Adani Power, has issued a warning to discontinue electricity supply to Bangladesh if dues totalling nearly $850 million (around Rs 7,200 crore) are not cleared by 7 November, according to media reports. 

Local reports indicate that APJL has already cut its power supply by half due to unpaid bills, amounting to $846 million. Recent data from Power Grid Bangladesh PLC revealed that the Adani plant significantly reduced output on Thursday night, creating a power deficit of more than 1,600 megawatts (MW) in Bangladesh. With a total capacity of 1,496 MW, the plant produced only 700 MW from a single operational unit during this period, according to The Daily Star.

In an earlier letter to the Bangladesh Power Development Board (PDB), Adani Power requested payment of outstanding dues by 30 October. The letter, dated 27 October, warned that non-payment would lead to a suspension of power supply, as stipulated in the Power Purchase Agreement (PPA). The PDB has yet to secure a letter of credit (LC) for $170.03 million from Bangladesh Krishi Bank or resolve the remaining dues.

Although the PDB has been making weekly payments of approximately $18 million, charges have now exceeded $22 million, resulting in accumulating arrears. A recent PDB payment to Krishi Bank was reportedly stalled by a shortage of dollars, preventing the issuance of the necessary LC.

Adani Power has clarified that, under any supply suspension, it reserves the right to claim capacity payments as per Section 13.2(1) of the PPA. Following the installation of an interim government in Bangladesh after the departure of former Prime Minister Sheikh Hasina, Adani has increased pressure for the dues settlement. The interim government, led by Nobel Laureate Professor Muhammad Yunus, was established on 8 August, and Adani Group Chairman Gautam Adani has directly addressed Chief Adviser Yunus about the issue.