Adani Power to fully restore supply to Bangladesh: Report
Adani Power has agreed to resume full electricity supply from its 1,600 MW plant in India to Bangladesh within days, ending a three-month partial shutdown, Reuters report.
However, the company has refused Dhaka’s request for discounts and tax concessions.
The supply was halved on October 31 due to payment delays caused by Bangladesh’s foreign exchange shortage.
This led to one of the plant’s two units shutting down on November 1.
Subsequently, Bangladesh requested only half the supply, citing lower winter demand and ongoing payment issues.
With summer demand approaching, the Bangladesh Power Development Board (BPDB) asked for full power restoration.
Adani Power has now agreed to resume complete supply by next week, according to sources with direct knowledge of the matter.
The plant, located in eastern India, exclusively supplies Bangladesh.
Adani Power rejects concessions
Despite agreeing to restore supply, Adani Power has refused BPDB’s demands for discounts and tax benefits worth millions of dollars, said the sources.
During a virtual meeting on Tuesday, Adani Power insisted on sticking to the terms of the power purchase agreement, and further discussions are expected.
“They are not willing to forgo even $1 million,” one source told Reuters. “We have not secured any concessions. While we seek a mutual understanding, they are strictly adhering to the contract.”
BPDB Chairperson Md. Rezaul Karim did not comment on the differences but told Reuters earlier this week that “now there is no big issue with Adani” and that full power supply was set to resume.
He also said efforts were being made to increase payments beyond $85 million per month.
Outstanding dues and pricing dispute
An Adani Power spokesperson did not immediately respond to a request for comment.
However, the company recently stated that power dispatch depends on procurer requirements, which fluctuate.
In December, an Adani source claimed BPDB owed the company around $900 million, while Karim at the time estimated the figure at $650 million, according to the Reuters report.
The pricing dispute centres on how power tariffs are calculated.
BPDB previously wrote to Adani Power requesting tax exemptions and an extension of a discount programme that ran for a year until May.
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