Dhaka, Nov 03 (V7N)- With power supply to Bangladesh recently reduced due to outstanding payments, Adani has issued a final notice that if dues are not settled by November 7, a complete power disconnection could follow, reports the Times of India. Bangladesh currently owes Adani approximately $850 million.

Adani initially set an October 31 deadline for the Bangladesh Power Development Board (BPDB) to clear the outstanding amount and secure a $170 million letter of credit (LC) to ensure payment stability. While BPDB attempted to issue an LC through Krishi Bank, this approach reportedly did not align with the power purchase agreement due to the national dollar shortage. Consequently, Adani Power Jharkhand reduced supply starting October 31, exacerbating Bangladesh’s electricity shortage. The most recent report from Power Grid Bangladesh (PGB) indicated that Adani’s Godda plant in Jharkhand provided 724 MW, nearly half of its total capacity of 1,496 MW. Other power facilities, including Payra (1,244 MW), Rampal (1,234 MW), and SS Power I (1,224 MW), are also operating at reduced capacities due to fuel shortages.

Industry insiders say that some power units have limited fuel procurement as Bangladesh’s payment delays have caused dues to accumulate. Although Bangladesh reportedly paid around $90 million in October, payments from earlier months were in the range of $20-50 million, against monthly invoices of $90-100 million. Currently, the Jharkhand plant supplies electricity at BDT 10-12 per unit, with costs linked to Indonesian and Australian coal prices. Adani executives have expressed a desire for a resolution, noting that uncertainty over payment remains a significant factor behind the warning.

If payment is not settled by the deadline, Adani may halt the Godda plant’s operations, posing a major setback as Bangladesh is its only customer. Such a suspension could further jeopardize the plant’s 800 MW units, with one unit already idle. Monthly invoices amounting to $90-100 million suggest Adani could lose over $1.1 billion annually if operations cease.

Following the exit of Sheikh Hasina’s government, Adani began exploring the potential to supply power within India, where demand is consistently high and payments more assured. The company has reportedly been advised to consider connecting to India’s local grid via a sub-station in Lakhisarai, Bihar.

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