Sat Nov 02 12:00:00 UTC 2024: ## Adani Group Cuts Power Supply to Bangladesh Over $846 Million Debt
**Dhaka, Bangladesh** – In a significant development that could lead to severe electricity shortages in Bangladesh, the Adani Group has reduced its power supply to the neighboring country by 50%. The move comes as a result of Bangladesh’s outstanding debt of $846 million to Adani Power Jharkhand Limited (APJL).
According to a report in The Daily Star, Adani Power, a wholly-owned subsidiary of Adani Group, cut the supply on Thursday night, citing the non-payment of dues by Bangladesh Power Development Board (PDB). The 1,496 MW plant is now operating at a reduced capacity of 700 MW, resulting in a shortfall of over 1,600 MW for Bangladesh.
The situation escalated after Adani Power sent a letter to the power secretary in October, demanding payment of the outstanding amount by October 30th. The letter warned that failure to comply would result in the suspension of power supply. The company further stated that the PDB had neither provided a letter of credit for $170.03 million from Bangladesh Krishi Bank nor cleared the outstanding amount.
PDB officials have confirmed that they have been making weekly payments of approximately $18 million, but Adani has been charging more than in previous months. The increase in charges, attributed to a supplementary deal signed last year, has led to a rise in outstanding dues.
Adani Power has maintained its right to recover capacity payments under the Power Purchase Agreement (PPA) during the suspension period. The company has been pressing the interim government in Bangladesh to settle the dues since its installation in August.
The situation has raised concerns about the potential impact on Bangladesh’s power supply, particularly during the upcoming winter season. It remains unclear how the ongoing discussions between the two countries will resolve the issue and when power supply will be restored to its previous levels.
First Piper 