Bangladesh has accelerated the process of paying the outstanding dues of 800 million dollars i.e. about Rs 6700 crore to India’s private power generation company Adani Power. The company, which exports power to Bangladesh from its Godda plant in eastern India’s Jharkhand state, has cut power supply by up to 50% due to payment delays. Adani Power has demanded immediate repayment of its dues from the Bangladesh government as the company is facing challenges in importing coal required for power generation.
What does the report say?
A senior official of Bangladesh Power Development Board (BPDB) said that Adani Power has reduced the power supply to Bangladesh from 1,400 MW to 700-800 MW in recent weeks. Officials said on condition of confidentiality that if payment is not made on time, the cut in supply may increase further. However, Adani Power has not yet made any comment on the issue of deadline or payment in this regard.
Government is working for payment
The company owned by Gautam Adani exports electricity under its contract with Bangladesh. Muhammad Faujul Kabir Khan, an adviser to Bangladesh’s energy ministry, told Reuters that Bangladesh had paid Adani Power $96 million last month and was taking a bank loan to pay the $170 million due this month.
Bangladesh is facing this crisis
Bangladesh is having difficulty paying its bills due to rising prices of expensive fuel and other raw materials in recent years. In particular, global energy prices have seen volatility since the Russia-Ukraine war in 2022, adding to Bangladesh’s financial pressures. Additionally, recent political instability, including an attempt to oust Bangladeshi Prime Minister Sheikh Hasina in August, has further complicated the country’s economy.
What impact this payment dispute and supply cut will have on the relations between Bangladesh and Adani Power will be known in the coming times. The current economic situation of Bangladesh, rising fuel prices in the global market and shortage of international raw materials have put the country’s power supply system in crisis.
