Adani Power gives deadline to Bangladesh for clearing dues

Monday, 04 November 2024 - 6:41

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Adani Power is among the Indian power exporters to Bangladesh that are feeling the financial strain because of mounting delayed payments from Dhaka

Escalating pressure high on Bangladesh Power Development Board (BPDB) , Indian power exporters are adopting varied tactics to ensure debts are cleared. While Adani Power has set a deadline of November 7 to clear its outstanding and provide the letter of credit (LC), players like SEIL Energy India are keeping the communication channels open.

For Adani Power the oustanding was approximately $850 million and LC worth $170 million was pending from the Bangladesh government.

Adani Power is among the Indian power exporters to Bangladesh that are feeling the financial strain because of mounting delayed payments from Dhaka. Other suppliers are SEIL Energy India and PTC.

SEIL Energy India has recieved $ 30 million, but still has an outstanding $ 180 million.

According to multiple sources, “While payment has slightly improved in last month but still dues are very large thus straining the economic viability of the projects.”

Reports have come in last couple of days that Adani Power has written to BPDB to clear the dues by October 30. According to reports, Adani Power has said that if the bills are not paid it shall take remedial steps the power purchase agreement.

Meanwhile, the Indian suppliers are keeping the communication channels open with Dhaka. Adani supplies power to Bangladesh from its dedicated 1,600 MW power plant in Jharkand with two units of 800 MW. It has already reduced supply to Bangladesh by shutting down one unit. Second Unit is giving approximately 500 MW.

Suppliers like SEIL Energy and PTC which once were exploring using using the sovereign guarantee made by BPDB during the signing of the power purchase and power sale agreements are now holding on as payments have trickled in during October.

SEIL Energy supplies Bangladesh with 250 MW of power directly and 200 MW through PTC under the long-term power purchase agreements awarded through competitive bidding.

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