Adani to stop power supply to Bangladesh if dues not paid

After slashing the power supply to Bangladesh over non-payment of dues, Adani Power has set a deadline of Nov 7 to switch off the flow of electricity if there is no clarity on settlement of the outstanding amount that adds up to almost $850 million (around Rs 7,200 crore).

Adani had set a deadline of Oct 31 for the Bangladesh Power Development Board to clear the dues and provide a letter of credit (LC) of $170 million (around Rs 1,500 crore) to ensure security of payment, reports times of india.

While BPDB did seek to issue an LC against the outstanding amount through Krishi Bank, the move was not in line with the terms of the power purchase agreement, a source told TOI. Shortage of dollars was cited as one of the reasons.

It prompted Adani Power Jharkhand to reduce supply from Oct 31, exacerbating the turmoil-torn country’s power shortage. According to the latest report put up on the website of Power Grid Bangladesh (PGB), on Friday, Adani’s plant in Godda (Jharkhand) supplied 724-megawatt against the installed capacity of 1,496 MW.

Adani Power Jharkhand is the largest power supplier, followed by Payra (1,244 MW), Rampal (1,234 MW) and SS Power I (1,224 MW) plants._Agencies.