India, Dec 10 (V7N) – Adani Power Ltd. has requested new concessions from the Indian government for its $2 billion coal-fired power plant in Jharkhand, which is facing financial strain due to unpaid dues from Bangladesh, the plant's sole electricity buyer.

While India's power ministry allowed Adani to sell electricity domestically in August, the plant's location in a special economic zone (SEZ) has complicated these sales. Under current regulations, power from the SEZ is considered imported and subject to taxes unless exemptions are granted, sources revealed.

Adani has also sought to retain a waiver on customs duties for the imported coal used to fuel the 1.6-gigawatt facility. Without these concessions, selling the power domestically at competitive rates becomes unfeasible, insiders said.

The plant, which supplies approximately 10% of Bangladesh's electricity, had accrued $790 million in dues by the end of September. Some payments from Bangladesh have since been received, but challenges persist.

Nishit Dave, Adani’s head of investor relations, indicated during an October analyst call that while linking the plant to India's grid isn't the immediate plan, it remains a consideration if financial issues worsen.

The payment delays stem from Bangladesh’s efforts to renegotiate a power-purchase agreement signed by the previous government, which faced allegations of corruption before its ousting earlier this year.

The Jharkhand plant's struggles are the latest in a series of issues for the Adani Group, which has denied allegations of involvement in a $250 million bribery scheme brought by US prosecutors last month. The company has vowed to contest these charges legally.

India's SEZ regulations have posed challenges for other industries as well. For instance, domestic solar module producers faced steep import taxes on components manufactured in SEZs, prompting some to relocate production outside these zones.

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