NEW DELHI: Amid student-led protest in Bangladesh, Adani Power Limited, the power generating unit of Adani Group, has accumulated unpaid dues of up to $800 million from the country.
According to a report, Bangladesh Bank’s newly-appointed Governor Ahsan H. Mansur warned that if the payments are not made, electricity supply may be halted. However, Adani Power has no plans to cut off supply lines for now, but may face pressure from lenders and coal suppliers if payments remain outstanding.
Despite the financial turmoil, Adani Power has assured that it will continue to supply power to Bangladesh from its 1,600MW plant in Jharkhand, which is dedicated to supplying 100% of its electricity to the neighboring nation.
The Power Purchase Agreement (PPA) for the power supply was signed between Adani Power (Jharkhand) and the Bangladesh Power Development Board (BPDB).
The plant currently sources coal from Adani Group’s mines in Australia.
Recently, the power ministry amended power import/export guidelines to enable electricity supply from plants set up as export-oriented units to sell power within India.
The amendment allows the government to permit connection of such generating stations to the Indian grid to facilitate the sale of power within India in case of sustained non-scheduling of full or part capacity or default notice issued by the generator for any default, including delayed payment under the PPA.
This amendment comes after the recent political crisis in Bangladesh, which saw the Sheikh Hasina-led government forced to resign and the former Prime Minister of the country fleeing to India for safety. The move is seen as a precautionary measure to ensure power supply and mitigate potential losses for Adani Power.
Adani Group has not issued an official statement on the matter. The delayed payments highlight the financial and geopolitical risks Adani Group faces as it expands globally, particularly in neighboring countries like Sri Lanka, Bhutan, and Nepal. This expansion aligns with Indian Prime Minister Narendra Modi’s broader policy goals in the region.