Bangladesh Power Crisis: Before Bangladesh elections, Adani Group has warned the Power Development Board regarding payment of dues. Non-payment of approximately $112.7 million may affect electricity supply. Learn about the case in detail…
Adani-Bangladesh Power Payment Dispute: Just before the elections in Bangladesh, a big economic issue has come into discussion. The ongoing payment dispute between India’s Adani Group and Bangladesh Power Development Board (PDB) has now come to the fore. Adani Group has clearly demanded the outstanding amount and has also said that if payment is not made, power supply may be affected. According to media reports, on January 29, Adani Power Limited Vice President Avinash Anurag sent an official letter to the Chairman of Bangladesh Power Development Board. This letter states that for the power plant to run normally, payment of $ 112.7 million (about Rs 1,000 crore) needs to be made immediately. Adani Group says that due to continuously increasing dues, there is huge pressure on the operation of the power plant.
How much money is outstanding and why did the dispute increase?
In the letter sent by Adani, it has been told that the total outstanding amount is in two parts. The first part is worth $53.2 million, which is related to electricity supply till June last year. The second part is of $59.6 million, which is payment for electricity services provided till October. The company claims that despite repeated reminders, Bangladesh Power Board could not pay this amount.
What will happen if payment is not made?
Adani Group has clearly warned in the letter that if the dues are not paid, the partners involved in power generation, maintenance and power plants may face problems. This can have a direct impact on power supply. This is not the first time that Adani Group has given such a warning. Last year also the company had sent a letter to PDB giving the deadline for payment till November 10. Then it was clearly said that if the money was not received then the electricity supply could be stopped from November 11. After this, Bangladesh paid about 100 million dollars in November, but from December the outstanding amount started increasing again. Now once again the same situation seems to be happening.
Why did this matter become important in the election environment?
Parliamentary elections are to be held in Bangladesh on February 12 and a referendum is also proposed on the same day. Even before the elections, the political atmosphere of the country is heated. Many parties including BNP and Jamaat-e-Islami are busy campaigning with full force, while Sheikh Hasina’s Awami League is banned. At such a time, issues like electricity supply and dues to foreign companies directly raise questions on the financial condition of the government.
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