Adani Cuts Cross-Border Electricity Supply to Bangladesh Amid Unpaid Bills
India’s Adani Group Slashes Power Supply to Bangladesh
Indian conglomerate Adani has reduced its cross-border electricity supply to Bangladesh by half, citing around $850 million in unpaid bills, according to power officials. This move has left Bangladesh scrambling to boost its power production to stem blackouts.
Power Supply Reduced by Half
Adani’s coal-fired Godda plant in India’s Jharkhand state, which is a $2 billion project including transmission lines that opened last year, usually supplies between 7-10% of Bangladesh’s baseload power demand of 13 GW. However, Adani had warned Dhaka in September to settle its bills, which had surged to around $850 million.
Adani’s Warning
At the time, Adani called it an “unsustainable situation, where we are meeting not only our supply commitments but also those to our lenders and suppliers, despite rising receivables.” There was no immediate comment from Adani on Sunday.
Bangladesh’s Financial Struggles
Bangladesh, a nation of around 170 million people, is struggling to find dollars to make the payments. Its new leaders are focused on the political fallout of a student-led revolution in August that toppled autocratic ex-leader and close Indian ally Sheikh Hasina.
Payment Arrangements
“We are discussing the issue with them (Adani), and informed them that it is not possible to make the total payment in a single month,” said Rezaul Karim, chairman of the state-run Bangladesh Power Development Board (BPDB). “But we are trying to increase the payment size gradually.” Karim also mentioned that Bangladesh paid $97 million to Adani in October, which was “higher than the previous three months’ payment.”
Power Supply Situation in Bangladesh
Demand is usually lower in November, when Bangladesh enters a relatively cooler period after months of blistering heat when consumers rely on energy-hungry air conditioners to keep cool. On Friday, Adani’s Godda plant supplied 724 megawatts, against the installed capacity of 1,496 MW, with Bangladesh facing around 1,680 MW of load shedding. Bangladesh also imports 1,160 MW from Indian states of West Bengal and Tripura.
Conclusion
The reduction in power supply from Adani’s Godda plant has left Bangladesh facing a significant shortage of electricity, which may lead to blackouts and disruptions in daily life. The Bangladeshi government is working to increase the payment size gradually and exploring other options to meet the growing demand for electricity.
FAQs
* What is the reason for the reduction in power supply from Adani’s Godda plant?
+ The reduction is due to around $850 million in unpaid bills.
* What is Adani’s warning to Dhaka?
+ Adani called it an “unsustainable situation, where we are meeting not only our supply commitments but also those to our lenders and suppliers, despite rising receivables.”
* How is Bangladesh addressing the power supply issue?
+ The Bangladeshi government is discussing the issue with Adani and trying to increase the payment size gradually, and is also exploring other options to meet the growing demand for electricity.