{"id":18704,"date":"2024-11-10T14:37:47","date_gmt":"2024-11-10T09:07:47","guid":{"rendered":"https:\/\/bigbreakingwire.in\/?p=18704"},"modified":"2024-11-10T14:38:16","modified_gmt":"2024-11-10T09:08:16","slug":"adani-power-electricity-supply-to-bangladesh","status":"publish","type":"post","link":"https:\/\/bigbreakingwire.in\/adani-power-electricity-supply-to-bangladesh\/","title":{"rendered":"Adani Power to Continue Supplying Electricity to Bangladesh Despite $800 Million Outstanding Dues"},"content":{"rendered":"
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Adani Power has reaffirmed its commitment to continue supplying electricity to Bangladesh from its 1600 MW Godda power plant, despite Bangladesh owing over $800 million in outstanding dues. The entire output of the Godda plant, located in India\u2019s Jharkhand state, is dedicated to meeting Bangladesh’s electricity needs. This power plant is the only one in India where 100% of the electricity generated is exported to a neighboring country.

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Adani Power has reportedly appealed to the Bangladeshi government to settle the pending payments as soon as possible. However, the company remains committed to maintaining the electricity supply as per its contractual agreement with Bangladesh. In an earlier statement on August 16, following political changes in Bangladesh, Adani Power emphasized its understanding of the country\u2019s energy requirements and reiterated that it would continue its power supply in line with the agreement.

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The monthly billing for the electricity supplied from the Godda plant averages between $90 million to $100 million. The plant contributes approximately 10% of Bangladesh\u2019s total electricity demand.

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Long-Term Power Purchase Agreement<\/strong>

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In November 2017, under the leadership of Prime Minister Sheikh Hasina, Bangladesh signed a 25-year Power Purchase Agreement (PPA) with the Adani Group. The agreement ensures a stable supply of electricity to Bangladesh, which plays a critical role in fulfilling the country\u2019s growing energy demands.

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Revised Export Guidelines<\/strong>

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In recent updates, the Indian government has revised its import\/export guidelines. Under these new rules, power plants set up with export conditions, like the Godda plant, may be allowed to sell electricity domestically under certain circumstances. This includes situations where delayed payments, as outlined in the PPA, result in default notices being issued, or if the plant\u2019s full capacity is not utilized. In such cases, the electricity generated can be redirected to the Indian grid.

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This revision provides flexibility to Adani Power in case of prolonged payment delays, ensuring that the plant can continue operations efficiently without financial strain.<\/p>\n\n\n\n

Future Implications<\/strong>

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The situation highlights the complex interdependence between India and Bangladesh in the energy sector. Adani Power\u2019s continued support despite financial challenges showcases its long-term vision and commitment to cross-border cooperation. However, the resolution of the payment issues will be crucial for the sustainable functioning of the Godda power plant and uninterrupted energy supply to Bangladesh.<\/p>\n\n\n\n

Update<\/strong><\/p>\n\n\n\n

India’s Adani Group has alerted Bangladesh’s new government that the $500 million in overdue payments from a disputed power project has become “unsustainable,” according to a Financial Times report. Bangladesh’s total power sector liabilities stand at $3.7 billion, with Adani owed up to $800 million, including $492 million in outstanding dues.<\/p>\n\n\n\n

Update, November 10, 2024<\/strong><\/p>\n\n\n\n

Bangladesh is still facing an electricity shortage, increasing the risk of blackouts, despite making a partial payment of $170 million to Adani Power Ltd. The company, which operates the Godda thermal plant in India, had reduced its supply to Bangladesh by half to 500 megawatts, down from 700 megawatts, after overdue payments reached $850 million. The payment to Adani Power eases some pressure from lenders, but the crisis is far from resolved. The interim government, led by Muhammad Yunus, is already dealing with financial challenges, and continued outages could worsen public dissatisfaction.
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Bangladesh Interim Government to Review Adani Power Deal and Other Indian Agreements: Report<\/a><\/blockquote>