NAIROBI, Kenya – In a recent move to recover substantial outstanding payments, India’s Adani Power has sharply reduced electricity supply to Bangladesh, according to data from Bangladesh’s power grid operator and industry insiders.
The firm, which supplies electricity to Bangladesh from its dedicated 1,600 MW Godda plant in Jharkhand, scaled back its supply from around 1,400-1,500 MW in early August to between 700-750 MW earlier this month.
On Thursday night, this supply dropped further to approximately 520 MW.
The reductions come amid efforts by Bangladesh’s interim government to address an outstanding debt of over Ksh.103 billion ($800 million) owed to Adani Power.
Bangladesh, grappling with a financial crunch triggered by high fuel and goods prices following Russia’s 2022 invasion of Ukraine, has struggled to keep up with payments.
“We are gradually paying the dues and will take alternative measures if anyone stops the supply. We will not let any power producer hold us hostage,” Muhammad Fauzul Kabir Khan, a power and energy adviser within Bangladesh’s caretaker government, said on Thursday.
Despite recent efforts, including a Ksh.21.9 billion ($170 million) payment facilitated by an expedited letter of credit, Bangladesh continues to experience reduced power delivery.
Adani Power, for its part, declined to comment on the specifics of its decision to cut supply or confirm payments received from Dhaka.
Sources close to Adani indicated that the reductions were influenced both by Bangladesh’s demand and the outstanding dues, though they spoke anonymously, as they are not authorized to engage with the media.
Adani Power’s actions come at a politically turbulent time for Bangladesh, following the ouster of Prime Minister Sheikh Hasina in August.
The caretaker government faces a delicate balancing act, addressing a backlog of utility payments while maintaining power stability amid a challenging economic landscape.
The firm, which supplies electricity to Bangladesh from its dedicated 1,600 MW Godda plant in Jharkhand, scaled back its supply from around 1,400-1,500 MW in early August to between 700-750 MW earlier this month.
On Thursday night, this supply dropped further to approximately 520 MW.
The reductions come amid efforts by Bangladesh’s interim government to address an outstanding debt of over Ksh.103 billion ($800 million) owed to Adani Power.
Bangladesh, grappling with a financial crunch triggered by high fuel and goods prices following Russia’s 2022 invasion of Ukraine, has struggled to keep up with payments.
“We are gradually paying the dues and will take alternative measures if anyone stops the supply. We will not let any power producer hold us hostage,” Muhammad Fauzul Kabir Khan, a power and energy adviser within Bangladesh’s caretaker government, said on Thursday.
Despite recent efforts, including a Ksh.21.9 billion ($170 million) payment facilitated by an expedited letter of credit, Bangladesh continues to experience reduced power delivery.
Adani Power, for its part, declined to comment on the specifics of its decision to cut supply or confirm payments received from Dhaka.
Sources close to Adani indicated that the reductions were influenced both by Bangladesh’s demand and the outstanding dues, though they spoke anonymously, as they are not authorized to engage with the media.
Adani Power’s actions come at a politically turbulent time for Bangladesh, following the ouster of Prime Minister Sheikh Hasina in August.
The caretaker government faces a delicate balancing act, addressing a backlog of utility payments while maintaining power stability amid a challenging economic landscape.
