Adani Halves Power Supply to Bangladesh Over Unpaid Bills: Report
POWER & RENEWABLE ENERGY

Adani Halves Power Supply to Bangladesh Over Unpaid Bills: Report

India's Adani Power Jharkhand (APJL), a fully-owned subsidiary of Adani Power, has ceased half of its power supply to Bangladesh due to outstanding bills totalling $846 million. According to data from Power Grid Bangladesh PLC, the Adani plant reduced its supply on Thursday night.

Bangladesh experienced a power shortfall exceeding 1,600 megawatts (MW) during the night between Thursday and Friday, as the 1,496 MW plant is now producing only 700 MW from a single unit, the newspaper noted.

Previously, Adani had sent a letter to the power secretary, urging the Bangladesh Power Development Board (PDB) to settle its outstanding dues by October 30.

The letter, dated October 27, indicated that if the bills were not cleared, the company would have no choice but to take remedial action under the Power Purchase Agreement (PPA) by suspending power supply on October 31. The company mentioned that the PDB had not provided a letter of credit (LC) for $170.03 million from Bangladesh Krishi Bank, nor had it settled the outstanding amount of $846 million.

The newspaper quoted a PDB official who stated that while they had previously cleared a portion of the dues, Adani had been charging more since July than in earlier months.

The official explained that the PDB has been making weekly payments of around $18 million, while the charges have exceeded $22 million, resulting in an increase in due payments. He added that last week's payment was submitted to Krishi Bank, but the bank was unable to open a letter of credit against the payment due to a shortage of dollars.

Regarding the additional payment, the official mentioned that when the PDB inquired about coal pricing in February of the previous year, they had signed a supplementary agreement that required Adani to quote coal prices lower than those of other coal-fired power plants.

India's Adani Power Jharkhand (APJL), a fully-owned subsidiary of Adani Power, has ceased half of its power supply to Bangladesh due to outstanding bills totalling $846 million. According to data from Power Grid Bangladesh PLC, the Adani plant reduced its supply on Thursday night. Bangladesh experienced a power shortfall exceeding 1,600 megawatts (MW) during the night between Thursday and Friday, as the 1,496 MW plant is now producing only 700 MW from a single unit, the newspaper noted. Previously, Adani had sent a letter to the power secretary, urging the Bangladesh Power Development Board (PDB) to settle its outstanding dues by October 30. The letter, dated October 27, indicated that if the bills were not cleared, the company would have no choice but to take remedial action under the Power Purchase Agreement (PPA) by suspending power supply on October 31. The company mentioned that the PDB had not provided a letter of credit (LC) for $170.03 million from Bangladesh Krishi Bank, nor had it settled the outstanding amount of $846 million. The newspaper quoted a PDB official who stated that while they had previously cleared a portion of the dues, Adani had been charging more since July than in earlier months. The official explained that the PDB has been making weekly payments of around $18 million, while the charges have exceeded $22 million, resulting in an increase in due payments. He added that last week's payment was submitted to Krishi Bank, but the bank was unable to open a letter of credit against the payment due to a shortage of dollars. Regarding the additional payment, the official mentioned that when the PDB inquired about coal pricing in February of the previous year, they had signed a supplementary agreement that required Adani to quote coal prices lower than those of other coal-fired power plants.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Sabarmati Riverfront Two Plots Up for Auction at Rs2.24 bn Base Price

Two commercial plots on the western bank of the Sabarmati Riverfront will be auctioned with a base price of Rs 112 crore each, equivalent to Rs 1.12 bn apiece and Rs 2.24 billion in total. The parcels are located adjacent to the Metro Rail Bridge in Ahmedabad and form the first commercial offering after a prolonged pause. The Riverfront Development Corporation has framed the sale as part of a phased commercial release to revive development along the riverfront. The combined base valuation has been set by the corporation to reflect market rates along the riverfront. The corporation has fixed a ..

Next Story
Infrastructure Urban

Andhra Pradesh to Connect Over One Million Streetlights

Andhra Pradesh will undertake a statewide smart streetlighting programme across all 123 Urban Local Bodies (ULBs), bringing around 1.05 million (mn) streetlights under an AI enabled monitoring and management system. The programme will be implemented by Energy Efficiency Services Limited (EESL) with the Commissioner and Director of Municipal Administration under the state Municipal Administration and Urban Development Department. The project aims to convert conventional streetlighting into a digitally managed municipal service monitored and maintained remotely. The initial phase will cover abou..

Next Story
Infrastructure Urban

AMC To Procure Four Machines For Guard Rail Cleaning

Ahmedabad Municipal Corporation will introduce four specialised machines for cleaning guard railings along major roads and the central verges of BRTS and Metro corridors. The civic body plans to replace manual labour with mechanised cleaning to improve maintenance of road infrastructure and greenery. The purchase is estimated at Rs 82.8 million (mn), excluding GST. The proposal sets the base price of each machine at about Rs 20.7 million (mn) so four units total Rs 82.8 million (mn) before GST. 18 per cent GST will be applicable separately. During the warranty period each machine will operate ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement