Bangladesh owes USD800 million to Adani Power Ltd

NEW DELHI: Amid student-led protest in Bangladesh, Adani Power Limited, the power generating unit of Adani Group, has accumulated unpaid dues of up to $800 million from the country.

According to a report, Bangladesh Bank’s newly-appointed Governor Ahsan H. Mansur warned that if the payments are not made, electricity supply may be halted. However, Adani Power has no plans to cut off supply lines for now, but may face pressure from lenders and coal suppliers if payments remain outstanding.

Despite the financial turmoil, Adani Power has assured that it will continue to supply power to Bangladesh from its 1,600MW plant in Jharkhand, which is dedicated to supplying 100% of its electricity to the neighboring nation.

The Power Purchase Agreement (PPA) for the power supply was signed between Adani Power (Jharkhand) and the Bangladesh Power Development Board (BPDB).

The plant currently sources coal from Adani Group’s mines in Australia.

Recently, the power ministry amended power import/export guidelines to enable electricity supply from plants set up as export-oriented units to sell power within India.