New Delhi: Adani Power Jharkhand Limited (APJL), a subsidiary of Adani Power, has reduced its electricity supply to Bangladesh by 50% due to unpaid bills amounting to USD 846 million.
The reduction, which took effect on Thursday night, has led to a power shortfall of over 1,600 megawatts (MW) in Bangladesh, according to data from Power Grid Bangladesh PLC.
The 1,496 MW power plant, which previously supplied electricity at full capacity, is now operating at 700 MW from a single unit. This decision follows a letter from Adani Power to the Bangladesh Power Development Board (PDB), dated October 27, which requested the clearance of outstanding dues by October 30. The letter warned that failure to pay would result in a suspension of power supply under the terms of the Power Purchase Agreement (PPA).
A PDB official explained that while some previous dues had been cleared, the charges from Adani Power have increased significantly since July, leading to a growing backlog of unpaid bills. The official also mentioned that a recent payment could not be processed due to a dollar shortage, preventing the bank from opening a letter of credit.
Adani Power’s decision to cut supply is seen as a measure to enforce the terms of the PPA and recover the outstanding payments. The situation underscores the financial challenges faced by Bangladesh in managing its energy imports and the broader implications for its power sector.
