Dhaka, Sep 09 (V7N)- India's Adani Group has cautioned Bangladesh's new government that the nation’s overdue payments for coal power from the Godda power plant have become “unsustainable.” According to a statement to the Financial Times, Adani Power highlighted that while the company continues to meet its supply commitments, the growing receivables have become challenging. Despite this, Adani assured that power supply from the Godda plant to Bangladesh will continue.

The unpaid dues reportedly stand at $800 million, with Bangladesh being late on a $492 million payment. The ongoing situation comes as Bangladesh seeks loans from institutions like the World Bank to stabilize its finances. Governor Ahsan H Mansur warned that non-payment could lead to power cuts from the Adani plant.

The Godda power plant has been a point of contention, especially as Bangladesh buys electricity from India's exchange market at nearly half the price of Adani's coal-based power, raising questions about the agreement. Official data shows that Bangladesh paid Tk14.02 per kilowatt-hour for Adani’s electricity in 2023, while power from India’s electricity exchange market was purchased at Tk7.83 per unit.

The overall cost of power generation in Bangladesh has increased significantly, partly due to unfavourable contracts like Adani's, with the average generation cost rising to Tk11.03 per unit in 2023 from Tk8.84 in 2021-22. Experts argue that the government overestimated future demand in its energy planning, and concerns were raised over the high price of coal used by the Adani plant.

Some experts, including energy analyst Prof. M Tamim, have called for a review of the Adani power deal, suggesting that a lack of fairness and equity may necessitate renegotiation or even cancellation. M Shamsul Alam, vice president of the Consumers Association of Bangladesh, echoed similar concerns, arguing that the deal favoured the investor and should be reviewed or potentially scrapped.

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