Adani Power
Adani Power had warned Bangladesh of cutting power if the dues were not paid. This warning of Adani Power has worked. Bangladesh has promised to pay Rs 1450 crore to Adani Power. Bangladesh Power Board has issued a new Letter of Credit (LC) worth $173 million (over Rs 1,450 crore) to Adani Power for uninterrupted power supply. The move comes after Adani Power threatened to halve power supply and stop supply this week. Bangladesh has not paid dues of $843 million (over Rs 7,000 crore).
1,600 MW electricity is supplied
Adani Power supplies about 1,600 MW of power to Bangladesh from its coal-fired plant in Godda, Jharkhand. It has two units of about 800 MW each. Adani Power has additionally sought payment of $15-20 million from BPDB, otherwise the company will not restart the 800 MW first unit, which it had shut down last week, an official close to the matter said. ‘ An official associated with the matter said, ‘This is the third LC that Bangladesh Power Development Board (BPDB) has granted to Adani Power. Agricultural Bank of Bangladesh grants LC and ICICI Bank is its counterpart in India. The earlier LCs were not in accordance with the power purchase agreement.
The deal is for 25 years
An official associated with the matter said, ‘Adani Power has sought additional payment of $15-20 million from BPDB, otherwise the company will not restart the first unit of 800 MW, which it had closed last week.’ The company meets 10% of Bangladesh’s electricity needs. Adani Power signed a 25-year power purchase agreement (PPA) with BPDB in 2015. An industry official said payments from BPDB are intermittent as Bangladesh has received a loan from the International Monetary Fund (IMF).
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