1 day Ago
Bangladesh has halved the power it buys from neighbouring India's Adani Power , citing lower winter demand, government officials told Reuters on Monday, amid disagreements over dues running into hundreds of millions of dollars. Adani, whose founder has been accused by U.S.
authorities of being involved in a bribery scheme in India, charges which he has denied, halved supply to Bangladesh on Oct. 31 over payment delays as the country battles a foreign exchange shortage. Subsequently Bangladesh told Adani to keep supplying only half the power for now, officials said, although it will keep paying its old dues.
"We were shocked and angry when they cut our supply," said Md. Rezaul Karim, chairperson of the state-run Bangladesh Power Development Board (BPDB). "Winter demand is now down, so we have told them there is no need to run both units of the plant.
" Adani has been supplying power under a 25-year contract signed in 2017 under ousted Prime Minister Sheikh Hasina, from a $2-billion power plant in India's eastern state of Jharkhand that has two units, each with capacity of about 800 megawatts. Office Productivity Advanced Excel Course - Financial Calculations & Excel Made Easy By - Anirudh Saraf, Founder- Saraf A & Associates, Chartered Accountant View Program Web Development Advanced C++ Mastery: OOPs and Template Techniques By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Intermediate C++ Skills: Master Pointers, Structures and File Stream By - Metla Sudha Sekhar, IT Specialist and Developer View Program Astrology Vastu Shastra Course By - Sachenkumar Rai, Vastu Shashtri View Program Artificial Intelligence(AI) Mastering C++ Fundamentals with Generative AI: A Hands-On By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) ChatGPT Mastery from Zero to Hero: The Complete AI Course By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) AI for Everyone: Understanding and Applying the Basics on Artificial Intelligence By - Ritesh Vajariya, Generative AI Expert View Program Leadership Business Storytelling Masterclass By - Ameen Haque, Founder of Storywallahs View Program Strategy Succession Planning Masterclass By - Nigel Penny, Global Strategy Advisor: NSP Strategy Facilitation Ltd. View Program Marketing Future of Marketing & Branding Masterclass By - Dr.
David Aaker, Professor Emeritus at the Haas School of Business, UC Berkeley, Author | Speaker | Thought Leader | Branding Consultant View Program Web Development Java 21 Essentials for Beginners: Build Strong Programming Foundations By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Tabnine AI Masterclass: Optimize Your Coding Efficiency By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development JavaScript Essentials: Unlock AI-Driven Insights with ChatGPT By - Metla Sudha Sekhar, IT Specialist and Developer View Program Leadership Validating Your Startup Idea: Steps to Ensure Market Fit By - Dr. Anu Khanchandani, Startup Coach with more than 25 years of experience View Program Finance Financial Literacy i.e Lets Crack the Billionaire Code By - CA Rahul Gupta, CA with 10+ years of experience and Accounting Educator View Program Artificial Intelligence(AI) Master in Python Language Quickly Using the ChatGPT Open AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Generative AI for Dynamic Java Web Applications with ChatGPT By - Metla Sudha Sekhar, IT Specialist and Developer View Program Office Productivity Excel Essentials to Expert: Your Complete Guide By - Study At Home, Quality Education Anytime, Anywhere View Program Finance Tally Prime & GST Accounting: Complete Guide By - CA Raj K Agrawal, Chartered Accountant View Program A document seen by Reuters showed the plant ran at only 41.
82% capacity in November, the lowest this year, with one unit shut since Nov. 1. Two BPDB sources said Bangladesh had bought about 1,000 MW a month from Adani last winter, adding that Adani had asked the board when it would resume normal purchases, but had not received a definitive answer.
An Adani Power spokesperson said the firm was continuing supply to Bangladesh, although mounting dues were a significant concern, making plant operations unsustainable. "We are in constant dialogue with senior officials of BPDB and the government, who have assured us that our dues will be cleared soon," said the spokesperson. The firm was confident Bangladesh would fulfil its commitments, just as Adani had upheld its contract obligations, he added.
Karim said Bangladesh owed Adani about $650 million, and paid about $85 million last month and $97 million in October. An Adani Power source, speaking on condition of anonymity, said the dues had jumped to about $900 million, hurting its debt profile and risking a higher cost of funds. Bangladesh wants to sharply lower prices under the Adani deal, unless it is cancelled by a court, which has called for an investigation into it, the de facto minister for power and energy told Reuters on Sunday.
The Adani Power spokesperson said the firm had no indication that Bangladesh was reviewing its power purchase pact. Adani charges the highest rate of all Indian suppliers to Bangladesh, a government document seen by Reuters showed. Its cost per unit was 14.
87 taka during the fiscal year that ended on June 30 2024, compared with an average of 9.57 for all Indian suppliers. The retail price in Bangladesh is 8.
95 taka a unit, leading to an annual power subsidy bill of 320 billion taka ($2.7 billion). "Because the prices are high, the government has to subsidise," said Muhammad Fouzul Kabir Khan, Bangladesh's power and energy adviser.
"We would like power prices, not only from Adani, to come down below the average retail prices." (You can now subscribe to our Economic Times WhatsApp channel ).
