Months after halting power supply to unrest-hit Bangladesh over non-payment of dues, Adani Power resumed electricity supply to the neighbouring country. Both the units of Adani Power’s plants in Godda increased supply earlier this month after Bangladesh began clearing dues.
On 27th March, Rezaul Karim, chairman of Bangladesh Power Development Board, informed about the power supply resumption and said, “We’re making regular payments to Adani and receiving power as per our requirements.”
Reports say that Adani Power is receiving $80- 90 million regularly from Bangladesh. This amount also covers payment for current consumption. The dues are estimated at around $820-830 million, which is expected to be paid in the coming months. As per a Times of India report, Bangladesh Power Development Board had provided guarantees to assure Adani’s lenders and help reduce the cash crunch of the company.
In February this year, the interim government in Bangladesh, led by Muhammad Yunus, requested that Adani Power resume ‘full supply’ from its plant in Jharkhand.
The Indian conglomerate runs a 1600-megawatt plant (2 units of 800-megawatt capacity) in Jharkhand and supplies power exclusively to Bangladesh as per a contract signed with former Prime Minister Sheikh Hasina in 2017.
Adani Power shut down one unit of its $2 billion plant on 1st November last year. Bangladesh Power Development Board (BPDB) requested the Indian conglomerate to restore a ‘full supply’ of power, adding that it is paying $85 million a month to clear pending dues.
BPDB Chairman Mohammed Rezaul Karim said that Adani Power couldn’t synchronise the 2nd unit of its plant on 10th February .”We are trying to pay more, and our intention is to reduce the overdue. Now there is no big issue with Adani,” he added.
In December last year, a payment dispute arose when an Adani Power official said that BPDB owed it $900 million while the latter’s Chairman alleged that it only owed $650 million to the Indian conglomerate. The dispute is over the calculation of power tariffs.
