Sun Nov 03 13:58:14 UTC 2024: ## Adani Power Threatens to Cut Electricity Supply to Bangladesh Over Unpaid Dues

**Dhaka, Bangladesh:** Adani Power Jharkhand Limited (APJL), a subsidiary of Adani Power, has issued a stern warning to Bangladesh, threatening to discontinue electricity supply if outstanding dues totaling nearly $850 million (approximately Rs 7,200 crore) are not settled by November 7.

The company has already reduced its power supply to Bangladesh by half due to unpaid bills. According to The Daily Star, the Adani plant, with a total capacity of 1,496 MW, was only able to produce 700 MW from one operational unit on Thursday night, resulting in a shortfall of over 1,600 MW for the country.

In a letter dated October 27, Adani Power urged the Bangladesh Power Development Board (PDB) to clear the outstanding dues by October 30, stating that failure to do so would compel them to suspend power supply in accordance with the Power Purchase Agreement (PPA).

The PDB has been making weekly payments of around $18 million, but charges have risen to over $22 million, leading to accumulating unpaid balances. A dollar shortage has hampered the PDB’s ability to secure the necessary letter of credit.

Following the establishment of an interim government in Bangladesh, Adani has intensified its demands for the settlement of dues. Gautam Adani, chairman of Adani Group, has communicated directly with Chief Adviser Yunus regarding this issue.

If the outstanding dues are not settled by the deadline, Bangladesh could face a significant power shortage, potentially impacting its economy and daily life. The situation highlights the complex geopolitical and financial challenges facing the country.

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