Not demanded full payment from Bangladesh in 7 days: Adani Group

In a clarification regarding its deadline on payment of outstanding bills by Bangladesh, Adani Group has said it has not demanded full payment in 7 days.

Rather it has said that it has been cooperating fully and collaborating with the Bangladesh Power Development Board (BPDB) to resolve any issue, the group said in a press release issued by its PR firm on Sunday following an Indian newspaper report on the deadline to Bangladesh over clearing dues.

"Adani has not demanded full payment $800-$850 million in 7-day time. Cooperating fully and collaborating with BPDB to resolve any issue," it said.

Earlier, the Indian newspapers Times of India reported that Adani Power of India has said it will suspend electricity supply to Bangladesh if the government does not resolve its payment issues by 7 November.

Following a reduction in power supply due to outstanding dues, Adani Power has set the deadline for the Bangladesh government to clarify the situation regarding the dues, which total nearly $850 million.

Earlier, Adani Power had set an 31 October deadline for the Bangladesh Power Development Board (BPDB) to settle the outstanding amount and provide a letter of credit (LC) of $170 million to ensure secure payment. 

Although the BPDB attempted to issue an LC for the overdue amount through Krishi Bank, the effort did not align with the terms of the power purchase agreement, as reported by a TOI source. A shortage of dollars was mentioned as one of the reasons.

Adani Power Jharkhand reduced its supply from 31 October, worsening the existing power shortages in Bangladesh. 

As per the latest update on the Power Grid Bangladesh (PGB) website, on 1 November, Adani's plant in Godda (Jharkhand) supplied 724 megawatts against an installed capacity of 1,496 MW.

Preferring anonymity, a top official of BPDB told UNB that Adani Power requested Bangladesh to pay dues through a letter few days back.