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Bangladesh Crisis: Adani Power has cut electricity supply to Bangladesh mainly due to non-payment of dues. The company has clarified that if the outstanding amount is not settled by November 7, the power supply will be completely stopped. According to the information, currently Adani owes Bangladesh about 850 million dollars. This is a serious situation, because Bangladesh is facing power crisis and it can have many side effects on its economy.
Adani Power had earlier asked Bangladesh Power Development Board (BPDB) to clear the dues by October 31 and issue a letter of credit (LC) of $170 million (about Rs 1,500 crore), but BPDB rejected the LC through Krishi Bank. Attempted to release which was not as per the terms of the power purchase agreement. According to sources, shortage of dollars in Bangladesh has also become a major reason for this problem. This is a serious challenge not only for Adani but also for Bangladesh.
Bangladesh struggles with electricity shortage!
Adani Power Jharkhand reduced the supply of electricity from October 31, which has further increased the power crisis in Bangladesh. According to a recent report released on the website of Power Grid Bangladesh (PGB), Adani’s Godda plant supplied only 724 MW of electricity while its installed capacity is 1,496 MW. According to information, other plants like Rampal and SS Power are already working at half capacity due to shortage of coal. It is believed that the economic situation of the country may become more serious due to reduction in electricity production.
Adani Power was forced to take this step
It is being told that Adani Power was forced to take this step due to delay and uncertainty in payment from Bangladesh. If Adani stops its power supply, it will negatively impact the commerciality of the Godda plant as Bangladesh is its only customer. Adani Power has told that their one month bill is around 90-100 million dollars. If we talk about its one year revenue, it will be around 1.1 billion dollars (more than Rs 9,000 crore).
Economy will be affected!
After the recent change of government in Bangladesh, Adani has now started exploring the possibilities of supplying electricity in the domestic market. In such a situation, they have been asked to connect to a local grid which can be done through a sub-station in Lakhisarai, Bihar. It is believed that this may give Adani Power a new opportunity to expand its business in Bangladesh.
