Adani halves power supply to Bangladesh as arrears remain unpaid
However, speaking to The Business Standard, Power Division Secretary Farzana Momtaz said the issue has been resolved
India's Adani Power Jharkhand Limited, a wholly-owned subsidiary of Adani Power, has halved its power supply to Bangladesh since Thursday night due to unpaid dues.
A review of power import data from the Power Grid Bangladesh confirmed the reduction. The 1,496MW power plant is now producing 700MW from a single unit, resulting in over 1,600MW of load shedding on Thursday night and 933MW yesterday, according to the PDB.
However, Power Division Secretary Farzana Momtaz claimed that the complexities surrounding power imports from Adani have been resolved.
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"We have already spoken with Adani, and the LCs have been opened. Although we are not receiving full power as per our requirements yet, there are no issues with power imports. The payment matter is also being addressed," Farzana told The Business Standard today (1 November).
Earlier, amid disputes over inflated prices and demands for overdue payments, Adani Power Jharkhand had warned through a letter that it would cut off power entirely from 31 October if outstanding payments were not cleared.
Since the interim government took office, Adani Power has been pressing for the overdue payments.
On 28 October, Adani issued the letter to the Power Development Board (PDB) urging them to arrange for payment by 30 October as promised, otherwise it would be forced to halt power supply from 31 October, in line with the purchase agreement, due to operational cash constraints.
According to PDB sources, a letter of credit was supposed to be opened under Adani's name by 30 October through the Bangladesh Krishi Bank, but this process was not completed and the PDB requested an extension. However, in response, Adani shut down one unit on Thursday.
In the letter, Adani mentioned that, as of yet, the PDB has not issued an LC worth $170.03 million from the Bangladesh Krishi Bank nor paid the outstanding $846 million.
A PDB official said while a portion of the dues was cleared previously, Adani has been charging more since July than in prior months.
The PDB has been paying around $17-18 million weekly, but Adani's charge has risen above $22 million, leading to a further increase in outstanding bills.
The official added that the PDB had recently deposited payment to the Bangladesh Krishi Bank, but due to a dollar shortage, the bank could not open the required LC.
Currently, approximately 12% of Bangladesh's power demand is met through imports from India, according to industry insiders.
