Adani Group to suspend power supply to Bangladesh if dues not cleared: Report

The Adani Group has warned Bangladesh that it will completely suspend power supply to the country by November 7 if overdue payments of around $850 million (nearly Rs 7,200 crore) are not cleared, The Times of India reported on Sunday.

This comes a day after The Daily Star reported that had cut the electricity supply to Bangladesh by half due to non-payment of dues.

The Adani Group exports electricity to Bangladesh from its unit in Jharkhand’s Godda district under an agreement signed in 2017.

In September, the Financial Times reported that the Adani Group had warned the neighbouring country that its overdue payments had become unsustainable.

According to The Times of India, the conglomerate had set October 31 as the deadline to clear dues of $170 million (nearly Rs 1,500 crore). While the Bangladesh Power Development Board attempted to secure a letter of credit through Krishi Bank, the move reportedly did not meet the terms of the power purchase agreement, unidentified sources told the newspaper.

Shortage of dollars was also reportedly one of the reasons for Bangladesh’s failure to make the payment.

Due to this, Adani Power’s Godda Plant supplied only 724 megawatts to Bangladesh, out of the installed capacity of 1,496 megawatts.

“We are trying to meet the gap by running other plants,” Rezaul Karim, chairman of the Bangladesh Power Development Board, told AFP on Sunday.

Karim said Bangladesh was negotiating with...

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