Adani sets deadline for Bangladesh to clear dues of power bills

NEW DELHI: Adani Power has warned that it will completely cut off electricity supply to Bangladesh if the country's electricity arrears are not paid by November 7. Adani had reduced power supply to Bangladesh due to non-payment of $850 million (around Rs 7,200 crore). The ultimatum was issued after this.

The Bangladesh Power Development Board (PDB) was earlier given until October 31 to pay the arrears and provide a letter of credit (LC) of $170 million (around Rs 1,500 crore) to ensure security. However, Bangladesh was unable to meet the deadline. Bangladesh has pointed shortage of dollars as the reason for the difficulty in paying the money. Adani had been pressuring the interim government to pay the arrears since it took office after the ouster of Sheikh Hasina.

Adani Power is the largest electricity supplier to Bangladesh. Adani's plant in Godda (Jharkhand) was supplying only 724 megawatt of its installed capacity of 1,496 megawatt on Friday. Other affected plants are Payra (1,244 MW), Rampal (1,234 MW) and SS Power I (1,224 MW). The Rampal plant and SS Power I in Bagerhat, a joint venture of the Bangladesh India Friendship Power Company (BIPPC) and the National Thermal Power Corporation (NTPC), are already generating less than half their capacity due to coal shortage.

A PDB official said that although they had already paid part of the previous dues, the company has been charging more since July than in previous months. Adani's reduction in power supply will lead Bangladesh into a serious crisis.