Adani Power has warned Bangladesh of a complete suspension of power supply by November 7 if overdue payments of around $850 million are not cleared, according to a report by Times of India (TOI).
After missing an earlier deadline on October 31, the Bangladesh Power Development Board (BPDB) attempted to secure a $170 million letter of credit through Krishi Bank, but it did not meet the terms stipulated in their power purchase agreement, sources told TOI.
Adani's Godda plant supplied only 724 megawatts (MW) out of an installed capacity of 1,496 MW on Friday, Power Grid Bangladesh data showed. Other major plants, including those at Payra, Rampal, and SS Power I, also reported reduced outputs due to fuel shortages, the report said.
Bangladesh has struggled with timely payments, partly due to dollar shortages, according to industry sources. Payments to Adani Power ranged between $20-50 million in recent months, compared to monthly bills of $90-100 million, according to the TOI report.
Soon after the ouster of the Sheikh Hasina government in Bangladesh, Adani began exploring the supply of power in the domestic market given a steady growth in demand and assured payments. The company has been asked to seek connection to the local grid, which may be routed through a sub-station in Lakhisarai in Bihar, the report states.
0 Comments