Bangladesh currently owes Adani Power around $850 million, putting its power supply at serious risk. Adani has set a deadline of November 7 for Bangladesh to clarify its payment plan, warning that if it fails to respond, Adani will cut off electricity—an action that would worsen Bangladesh’s current power crisis.
Earlier, Adani set an October 31 deadline for payment along with a demand for a $170 million letter of credit (LC). However, due to dollar shortages and other financial constraints, the Bangladesh Power Development Board (BPDB) couldn’t meet this requirement. Following this, on October 31, Adani began reducing its electricity supply from the Godda plant in Jharkhand, cutting it down to 724 megawatts from a capacity of 1,496 megawatts.
Adani currently charges Bangladesh between 10-12 taka (7-8.5 rupees) per unit of electricity, which is roughly 27% higher than rates from other private Indian suppliers and 63% higher than state-run plants. Since April 2023, Bangladesh has depended on Adani Power and other Indian providers for approximately 1,160 megawatts, making Adani one of its largest suppliers.
Payment delays have led to mounting debt, as Bangladesh has only managed to pay around $90 million in October. In earlier months, payments ranged from $20-$50 million, falling short of the $90-$100 million monthly bills, which has further increased Bangladesh’s dues. Adani’s recent decision to reduce supply reflects its concern over delayed payments, as well as a lack of transparency in financial arrangements.
Although Adani has not publicly commented on the issue, senior officials have expressed hope for a solution. Yet, with continued delays, Adani is considering disconnecting Bangladesh’s power supply entirely—a move that would also affect the Godda plant’s viability, as Bangladesh is its sole customer.
With potential changes in Bangladesh’s government, Adani is exploring options within India’s power market, given the rising demand and reliable payments there. The company is now looking into connecting to the Indian grid through a substation in Lakhisarai, Bihar, marking a strategic shift in case the situation with Bangladesh does not improve.
Source: TBS বাংলা
