India's Adani Power has informed Bangladesh of an impending full suspension of electricity supply if the country fails to settle outstanding dues of $850 million by 7 November, according to a report by Indian media outlet The Times of India.
Recently, Adani Power Jharkhand Limited halved its power supply to Bangladesh, citing delays in receiving overdue payments as the reason for the decision.
According to sources referenced by The Times of India, after the original payment deadline of 31 October was missed, the Bangladesh Power Development Board (BPDB) attempted to secure a letter of credit worth $170 million through the Agricultural Bank of Bangladesh.
However, BPDB failed to meet the terms outlined in the Power Purchase Agreement, leading Adani Power to reduce electricity supply from its Jharkhand plant to Bangladesh since 31 October.
As per Power Grid Bangladesh’s data, Adani’s Godda plant, which has a production capacity of 1,496 megawatts, supplied only 724 megawatts on Friday (1 November).
Other major plants, including Payra, Rampal, and SS Power One, are also experiencing production cuts due to fuel shortages.
The Times of India report adds that NTPC’s joint venture with Bangladesh, the Bangladesh-India Friendship Power Company’s Rampal plant in Bagerhat, as well as SS Power One, are both operating at less than half capacity due to coal shortages.
Citing a source, the report indicates that BPDB’s delayed payments have allowed dues to accumulate significantly.
While Bangladesh paid Adani Power approximately $90 million in October, it reportedly made partial monthly payments of $20-50 million in previous months against bills of $90-100 million per month.
