Adani Power (Jharkhand) Ltd will resume full electricity supply to Bangladesh by November 7, 2024 as the Bangladesh Power Development Board (BPDB) begins addressing outstanding payments.
“We have already made a $10 million payment last Thursday, with another installment on Monday, and we expect to resume full power supply by next Thursday,” BPDB Chairman Rezaul Karim told Just Energy News on Sunday.
He added that BPDB is also working with banks to resolve the Letter of Credit (LC) issues, aiming for an amicable solution to the backlog.
Official of the Adani also confirmed the Just Energy News about the latest development over increasing of the supply of power gradually. The supply of electricity has already increased to 731.27MW at 1:00PM this afternoon which was 550MW last Thursday after withdraw of electricity from a unit, the officila confirmed.
Meanwhile, Adani official clarified that recent Indian media reports regarding the Adani power plant were inaccurate. “Adani has not demanded full payment of $800-$850 million within seven days. We are fully cooperating with BPDB to resolve any outstanding issues,” said an official Adani statement on Sunday.
After slashing the power supply to Bangladesh over non-payment of dues, Adani Power has set a deadline of Nov 7 to switch off the flow of electricity if there is no clarity on settlement of the outstanding amount that adds up to almost $850 million, reports Indian Media outlet Times of India.
BPDB Chairman Rezaul Karim confirmed to Just Energy News that BPDB is actively working to expedite payment settlements.
“Bangladesh Power Development Board (BPDB) has not provided the required Letter of Credit (LC) for $170.03 million from Bangladesh Krishi Bank nor cleared the overdue amount of $846 million (Tk 10,086 crore) as of 27 October 2024,” stated Adani Power (Jharkhand) Limited’s representative and Joint Coordination Committee president, M.R. Krishna Rao, in a letter to the Power Division.
Rao emphasised that failure to submit the LC and settle the outstanding amount on time constitutes a “material default” under the Power Purchase Agreement (PPA) with BPDB, hindering Adani Power’s ability to maintain supply.
He noted, “Due to significant overdue payments and the lack of an LC, we face difficulties securing working capital for coal suppliers and Operations and Maintenance (O&M) contractors, with our lenders now withdrawing support.”
Adani’s letter urges BPDB to address these defaults by 30 October 2024, warning that failure to do so will force Adani to suspend supply on 31 October 2024, with capital recovery measures enacted under PPA section 13.2(1).
Then, the Indian energy giant significantly withdrew supply of electricity from dedicated grid line.
