Adani Power cuts supply to Bangladesh by 60% amid payment dispute: Report

Adani Power has further reduced electricity supply to neighbouring Bangladesh amid outstanding dues exceeding $800 million.

The 1,600 MW Godda plant in Jharkhand, operated by Adani Power specifically to serve Bangladesh’s energy needs, had initially scaled down its supply from an average of 1,400-1,500 MW in August to around 700 MW in recent weeks. Late Thursday, supply dropped further to around 520 MW, reported Reuters citing data from Bangladesh's grid operator.

The reduction follows a series of payment disputes and missed financial commitments by the BPDB.

"We are gradually paying the dues and will take alternative measures if anyone stops the supply. We will not let any power producer hold us hostage," Reuters quoted Muhammad Fauzul Kabir Khan, power and energy adviser in Bangladesh's caretaker government, as saying.

Khan claimed that Bangladesh continues to get a reduced supply even though it has expedited the payment of dues and a November 7 payment deadline by Adani had been lifted, according to the report.

A BPDB official noted that while the board has been making payments of around $18 million weekly, the charges from Adani have climbed to over $22 million per week.

"This is why the due payments increased again," the official said, adding that they had submitted last week's payment to Krishi Bank as well, but the bank failed to open a letter of credit against the payment due to a dollar shortage.

About the additional payment, he said, when the PDB raised a question on the coal pricing in February last year, they signed a supplementary deal that obliged Adani to quote coal prices less than the rates charged by the other coal-fired power plants.

After the tenure of the one-year supplementary deal, Adani has again started charging as per the PPA, the report said.