Adani Power Jharkhand Limited (APJL), a wholly-owned subsidiary of Adani Power, has warned that it will discontinue electricity supply to Bangladesh if outstanding dues totaling nearly $850 million (approximately Rs 7,200 crore) are not settled by November 7, as per a Times of India report.
According to the latest local media reports, APJL has already , which amount to $846 million. Recent data from Power Grid Bangladesh PLC showed that the Adani plant reduced its output significantly on Thursday night, leading to a shortfall of over 1,600 megawatts (MW) for the country. The plant, with a total capacity of 1,496 MW, was only able to produce 700 MW from one operational unit during this period, according to The Daily Star.
In a prior letter to the Bangladesh Power Development Board (PDB), Adani Power had urged the clearance of outstanding dues by October 30. The letter, dated October 27, stated that failure to make payments would compel the company to suspend power supply in accordance with the Power Purchase Agreement (PPA). The PDB has not yet issued a letter of credit (LC) for $170.03 million from Bangladesh Krishi Bank, nor has it addressed the outstanding amounts.
The PDB has been making weekly payments of around $18 million, while the charges have risen to over $22 million, resulting in accumulating unpaid balances. Although the PDB recently submitted a payment to Krishi Bank, a dollar shortage has prevented the bank from issuing the necessary letter of credit.
Adani has stated that during any suspension of supply, the company retains the right to recover capacity payments as detailed in Section 13.2(1) of the PPA. Following the establishment of an interim government in Bangladesh after the ouster of former Prime Minister Sheikh Hasina, Adani has intensified its demands for the settlement of dues. The interim government, led by Nobel Laureate Professor Muhammad Yunus, was formed on August 8, and Gautam Adani, chairman of Adani Group, has communicated directly with Chief Adviser Yunus regarding this issue.
