After resolving payment issues, Adani Power has resumed full electricity supply to Bangladesh, meeting the country’s energy demands, according to officials from the Bangladesh Power Development Board (BPDB).
Adani Power has begun supplying electricity to Bangladesh at full capacity following the settlement of overdue payments. The company, part of Indian billionaire Gautam Adani’s conglomerate, resumed full power delivery after more than two weeks of reduced supply due to missed payments.
Bangladesh Power Development Board (BPDB) Chairman Rezaul Karim confirmed the development to Bloomberg, stating, “We are making regular payments to Adani, and we are now receiving electricity as per our demand.”
According to BPDB, Adani Power had reduced its electricity supply from its 1,600-megawatt coal-based plant in Jharkhand, India, in November due to the outstanding payments. However, following the payment of dues, Bangladesh now receives power from both units of the plant.
To resolve the outstanding balance, BPDB has been paying Adani Power $85 million per month. The settlement has paved the way for the supply of power from the second unit of the plant.
Liberty News’ national affairs correspondent states that there had been disagreements between the two parties over how the electricity price would be determined. According to a 2017 agreement, the price was to be set based on the average of two indices. Reuters reports that the electricity supplied by Adani Power to Bangladesh is priced 55% higher than that from other Indian power plants supplying electricity to Bangladesh.
LND/BG
