Based on a Reuters Report
India’s Adani Power has resumed full electricity supply to Bangladesh after the country made significant payments on its outstanding bills. The interim government led by Dr. Muhammad Yunus has already paid a large part of the due amount.
According to a Reuters report on Friday (May 2), Adani Power’s Chief Financial Officer (CFO), Dilip Jha, said that Bangladesh still owes the company around $900 million, but it has already paid about $1.2 billion.
Background: Power deal and financial crisis.
In 2017, Prime Minister Sheikh Hasina’s government secured an arrangement with Adani Power to purchase power from India. According to this arrangement, power from Godda, India, was transferred to Bangladesh via West Bengal.
However, when the war between Russia and Ukraine began in 2022, global gasoline prices increased. At the same time, political upheaval in Bangladesh, particularly rallies against former Prime Minister Sheikh Hasina, exacerbated the situation. The country began falling behind on its electricity bills.
Read More: Empowering farmers with ‘Fosholer Chikitsha’: How Technology is Changing Bangladesh’s Economy
Supply Cut and Tensions with India
As Bangladesh’s outstanding payments rose, Adani cut the electricity supply in half. This caused power outages throughout the country. During this time, relations between Bangladesh and India deteriorated, putting the electricity contract at risk.
But now, things are improving. Since the new government took charge, Bangladesh has started paying bills regularly, and Adani has resumed full electricity supply.
Adani is Hopeful, Bangladesh is Relieved
Dilip Jha said, “We are now supplying full power to Bangladesh. In fact, the payments we are receiving are more than the regular monthly bills.” He also said that Adani believes Bangladesh will continue paying not only the current bills but also the remaining old dues.
Progress in Bill Payments
According to Adani, Bangladesh had a total bill of about $2 billion. Out of this, around $1.2 billion has already been paid. Talks are ongoing regarding the remaining $900 million.
This progress is an important step for Bangladesh’s energy sector. Bangladesh’s businesses, farming, and daily life are expected to improve provided energy supply is steady.
Future possibilities
If this positive trend continues, Bangladesh could attract more investment in the energy sector. Stable power is essential for economic growth. It increases manufacturing efficiency, provides jobs, and improves people’s quality of life. Adani’s optimism that all dues will be paid shows renewed faith in Bangladesh’s efforts.
Conclusion
Bangladesh has made major progress by paying off a large part of its debt to Adani. This has helped to restore full electricity supply, which is very important for industries, agriculture, and daily life. If this positive trend continues, it will bring more stability to the country’s energy sector and strengthen relations with India.
Source: Kaler Kantho
