Physical Address

304 North Cardinal St.
Dorchester Center, MA 02124

Adani Power cuts electricity supply to Bangladesh over unpaid bills: Report

Adani Power Jharkhand Limited (APJL), a subsidiary of Adani Power, has halved its power supply to Bangladesh due to unpaid bills amounting to USD 846 million, The Daily Star reported on Friday.
Data from Power Grid Bangladesh PLC showed that the Adani plant reduced its supply on Thursday night, causing Bangladesh to experience a power shortfall of over 1,600 megawatts (MW) overnight. The 1,496 MW plant is now operating at 700 MW from a single unit.
Also read- Diwali Muhurat Trading 2024: Sensex ends 335 points higher; Nifty at 24,299
Earlier, Adani Power had sent a letter to the Bangladesh Power Development Board (PDB) requesting payment of outstanding dues by October 30. The letter, dated October 27, warned that failure to clear the bills would lead to a suspension of power supply by October 31 under the Power Purchase Agreement (PPA).
Also read- Tech Tonic | Amazon has no clue what to do with Alexa, and the Echo family
A PDB official said that while they had cleared some previous dues, since July, Adani’s charges have increased to over USD 22 million weekly, while PDB has been paying around USD 18 million, causing unpaid dues to grow.
Last week’s payment to Krishi Bank couldn’t be processed due to a dollar shortage, preventing the bank from opening a letter of credit, the official said.
Also read- Terms of Trade: The economics behind the demise of ‘it’s the economy, stupid’
After a one-year supplementary deal requiring lower coal prices ended, Adani resumed pricing based on the original PPA, which calculates coal costs from Indonesian and Australian indices, raising prices. Adani said they can claim capacity payments during any supply suspension per PPA rules.
Gautam Adani, chairman of Adani Group, also wrote to the Bangladesh’s interim government, led by Nobel Laureate Professor Muhammad Yunus, to address the dues.

en_USEnglish