Worst hit Adani Power is owed $800 million
MUMBAI: Bangladesh reportedly owes over $1 billion to five Indian power companies for the power they supplied.
Of this amount, approximately $800 million is owed to Adani Power, which supplies electricity from its 1.6 GW coal-fired plant in Godda, Jharkhand, via a dedicated transmission corridor.
SEIL Energy India is owed around $150 million as of June 30, 2024, under its power purchase agreement for 250 MW with Bangladesh.
The country, which has recently faced severe political unrest, also owes NTPC nearly $80 million for supplying around 740 MW of electricity from three of its plants.
Meanwhile, PTC India, which supplies 250 MW of power from West Bengal State Electricity Distribution Co to the Bangladesh Power Development Board, is owed $79 million, although it managed to recover $46 million by August 25.
Power Grid Corporation of India is owed $20 million.
Still supply power
Despite these significant outstanding payments, these companies have continued to supply power to Bangladesh.
However, the situation may become unsustainable as companies need to maintain financial stability.
The Godda plant, which uses imported coal and was fully commissioned in July 2023, was expected to offer a cost-effective alternative to liquid fuel-generated electricity in Bangladesh.
However, Adani Power now faces challenges in sustaining operations without payment, especially when dealing with upfront costs for coal, spares, and other operational needs.
Move to settle bills
Bangladesh’s financial strain has been worsened by ongoing political turmoil, which recently led to the ousting of the previous administration amid violent protests.
The newly appointed Governor of Bangladesh Bank, Ahsan H. Mansur, confirmed the substantial debt owed to Adani Power and emphasized the importance of settling these payments to ensure the continued electricity supply.
Adani Power, along with other Indian power providers such as NTPC and PTC India, is currently engaged in discussions with Bangladesh’s interim government to resolve the issue.
Crisis deepens
The economic crisis in Bangladesh has deepened, with arrears across various sectors reportedly reaching $2 billion.
Despite the military’s intervention in establishing an interim government to quell unrest, the country’s financial troubles continue to raise concerns about the stability of its international commitments, including those with Indian power suppliers.
