Adani Power has reduced its electricity supply to Bangladesh to 700 MW amid outstanding dues totaling USD 846 million, according to a report by The Daily Star. Adani Power Jharkhand Limited (APJL), a subsidiary of Adani Power, made the cut after Bangladesh’s Power Development Board (PDB) failed to clear these payments.
On Thursday night, the power supply from the Adani plant, which has a total capacity of 1,496 MW, was halved, resulting in a power shortfall of over 1,600 MW in Bangladesh. Currently, only one unit is operational at 700 MW.
Prior to the supply reduction, Adani Power had sent a letter to the PDB, requesting payment of outstanding dues by October 30. The letter, dated October 27, warned that failure to settle the bills could result in a suspension of power supply by October 31, in accordance with their Power Purchase Agreement (PPA).
A PDB official noted that while some previous dues had been cleared, the charges from Adani had increased significantly since July, rising to over USD 22 million weekly. However, the PDB has been paying only about USD 18 million, causing the unpaid balance to accumulate.
Compounding the issue, a recent payment to Krishi Bank could not be processed due to a shortage of dollars, which prevented the bank from opening a letter of credit.
Following the expiration of a one-year supplementary agreement that allowed for lower coal prices, Adani resumed charging based on the original PPA, which ties coal prices to Indonesian and Australian market indices, resulting in higher costs. Under the terms of the PPA, Adani can claim capacity payments during any supply suspension.
Gautam Adani, chairman of the Adani Group, has also reached out to Bangladesh’s interim government, led by Nobel Laureate Professor Muhammad Yunus, to discuss the outstanding dues.