Following a power outage, Bangladesh quickly pays Adani Power

Two top government officials say that Bangladesh is paying Adani Power more than $800 million faster than the Nov. 7 limit that the Indian company set. This is because Adani Power has cut its electricity exports to Bangladesh by more than half.

Adani Power sends electricity to Dhaka from its 1,600 megawatt (MW) Godda plant in the eastern Indian state of Jharkhand. Three people familiar with the situation said that the company set the deadline for receiving payments because it is having trouble importing the coal it needs to make electricity.

According to a senior official at the Bangladesh Power Development Board, billionaire Gautam Adani’s company reduced the amount of power it sent to Bangladesh this month from about 1,400 MW to 700–800 MW.

Because they couldn’t speak to the media, the officials spoke under the condition of anonymity.

Reuters asked Adani Power about the payment limit, but they didn’t answer.

Since Russia invaded Ukraine in 2022, Bangladesh has struggled to pay its bills due to the high cost of importing goods and fuel. The political unrest that led to the removal of former Prime Minister Sheikh Hasina in August has exacerbated the situation.

Muhammad Fouzul Kabir Khan, the power and energy adviser for the interim Bangladesh government, stated that they cleared $96 million one month ago and opened a line of credit for an additional $170 million this month. He told Reuters this.

Last month, people who know about the situation told Reuters that Bangladesh was looking closely at its deal with Adani Power because it was charging Bangladesh a rate that was almost 27% higher than what India’s other private producers charged.

“There are no problems with the power supply to Bangladesh,” said Dilip Kumar Jha, Chief Financial Officer of Adani Power, during a quarterly earnings call last week.

“We hope that there will be no further deterioration in terms of the outstanding,” he stated.