Silverio Omari
India’s Adani Power (ADAN.NS) has further reduced electricity supply to Bangladesh, aiming to recover over Ksh.103 billion ($800 million) in outstanding dues, as indicated by data from Bangladesh’s grid operator and sources familiar with the situation.
Adani Power, which supplies electricity to Dhaka from its dedicated 1,600 MW Godda plant in Jharkhand, India, had already cut supply this month to 700-750 MW from approximately 1,400-1,500 MW in early August.
On Thursday evening, the supply dropped further to about 520 MW, according to data from Power Grid Bangladesh and a Bangladesh Power Development Board (BPDB) official. “We are gradually settling the dues and will consider alternatives if anyone stops the supply.
We won’t allow any power producer to hold us hostage,” said Muhammad Fauzul Kabir Khan, power and energy adviser in Bangladesh’s caretaker government, in a statement to Reuters.
Despite Bangladesh accelerating payments and lifting a November 7 deadline set by Adani, the reduced power supply continues, noted a BPDB official. Recently, Bangladesh opened a letter of credit worth Ksh.21.9 billion ($170 million) for Adani and has been expediting payments to address the issue, according to a Reuters report. Adani Power has not responded to queries on the power reduction or payment details.
A source at Adani Power mentioned that the reduction aligns with Bangladesh’s demand and considers the unpaid dues, while officials from both the BPDB and Adani Power spoke anonymously due to media restrictions.
Bangladesh has been facing financial strain, struggling to cover its bills due to rising costs of fuel and imports following Russia’s invasion of Ukraine in 2022. Additionally, political upheaval, including the ouster of Prime Minister Sheikh Hasina in August, has further complicated the situation.
Muthomi Ireri
