Dhaka, Feb 15 (V7N) – India’s Adani Power has agreed to resume full power supply to Bangladesh from its 1,600-megawatt power plant in Jharkhand after a three-month hiatus, two sources told Reuters. However, the company has rejected Bangladesh’s request for concessions and tax breaks.

Power Supply Issues and Payment Delays

Adani Power halved its electricity supply to Bangladesh on August 31 last year due to delayed payments caused by the country’s foreign exchange crisis. The company later shut down one of its two 800-megawatt units on November 1.

Bangladesh had also requested a temporary reduction in supply during the winter season due to lower electricity demand. Adani Power complied, but delayed payments remained a key issue.

Resumption of Full Power Supply

With summer approaching, the Bangladesh Power Development Board (BPDB) requested Adani Power to resume full capacity operations. According to Reuters, Adani Power has agreed to supply full electricity from next week.

However, the company refused to provide any financial concessions. One source told Reuters, “Adani Power is not willing to make a concession, not even $1 million.”

Dispute Over Outstanding Dues

A BPDB-Adani Power meeting was held virtually on Tuesday to address the ongoing payment disputes. While Adani Power claims Bangladesh owes $900 million, BPDB previously stated the amount was around $650 million. The disagreement largely stems from differences in electricity tariff calculations.

BPDB Chairperson Rezaul Karim was unavailable for comment. However, he previously told Reuters, “We have no major problems with Adani now, and they are going to supply the entire electricity.” Efforts are being made to increase Bangladesh’s monthly payment to Adani Power from $85 million.

Tax Breaks and Exemptions Rejected

BPDB had earlier requested Adani Power to reinstate tax benefits that had been in place until May last year. The request for tax exemptions worth several hundred thousand dollars was also denied.

An Adani Power spokesperson recently stated that electricity supply fluctuates based on buyer demand, reinforcing that their supply decisions are market-driven.

With the full resumption of power supply, Bangladesh aims to stabilize its energy situation ahead of the peak summer demand, despite the unresolved financial disputes with Adani Power.

END/MSS/AJ