Adani Group reduces power supply in Bangladesh due to $846M dues, impacting energy security. Timely payments could restore operations and bilateral ties.
As per latest news, the Gautam Adani-led conglomerate, Adani Group, has taken up the decision to stop power supplies to Bangladesh from its Adani Bangladesh Godda power plant if the bills are not paid on time. This could lead to power scarcity in Bangladesh. So, the Adani Group is continuously imploring the Bangladesh government to clear the dues so that power supply can resume in Bangladesh and the living conditions of the people can also change for the better.
Adani To Cut Down Power Supply In Bangladesh:
Adani Power Jharkhand Limited, a wholly-owned subsidiary of Adani Power has recently stopped half of its power supply to Bangladesh. This decision has been taken mainly because of the outstanding bills of 846 million USD.
As per data from Power Grid Bangladesh PLC, the Adani Bangladesh plant has reduced the power supply to 700 MW. Bangladesh has recently reported a shortfall of over 1600 MW post the power supply was reduced as the 1,496 MW Adani Bangladesh plant is currently producing 700 MW from a single unit.
Earlier, the Adani Group had written to the power secretary asking the Bangladesh Power Development Board to clear its outstanding dues by 30th October 2024. The letter, which was dated 27th October 2024 mentioned that if the bills are not paid by the deadline, then the company will be forced to take remedial action under the power purchase agreement. It would suspend the power supply on 31st October.
The company also mentioned that PDB has not provided a letter of credit for an amount of 170.03 million USD from Bangladesh Krishi Bank. It has also not cleared the outstanding amount of 846 million USD.
Once the dues are cleared, the Adani Group will be able to supply power as usual from its Adani Bangladesh Godda power plant. The power scarcity will also come to an end.
The Power Supply From The Adani Godda Power Plant:
The Adani Power Jharkhand Limited achieved the commercial operations date of its second unit of the 2 X 800 MW ultra-supercritical thermal power plant on 26 June 2023. All the reliability run tests for the second unit of the power plant were completed on 25th June 2023.
This was done in the presence of Power Grid Corporation of Bangladesh and BPDB officials. On 6th April 2023, the first unit of the power plant also achieved its date of completion. Each of these units has a capacity of 800 MW. As per the power purchase agreement, the power supplied from
the Adani Godda power plant would help bring about energy security. It would also strengthen the relationship between India and Bangladesh.
As per the agreement, APJL was expected to supply 1,496 MW net power capacity from its power plant for a period of 25 years via a 400 kV dedicated transmission line which is connected to the Bangladesh grid.
This electricity was supposed to have a positive impact on Bangladesh’s power situation. It also helped replace the costly power generated from liquid fuel. The nation’s average cost of power purchase also reduced significantly.
The Recent Political Situation in Bangladesh:
Over the past few months, Bangladesh has been undergoing immense distress. This has had a direct impact on the country’s financial scenario. It also caused the ouster of the then Prime Minister Sheikh Hasina. Because of the recent political turmoil that Bangladesh has been growing through, the country has not been able to clear its dues.
This has led to an increase in dues. The Adani Group had already given several warnings to the interim government for the payment of dues. However, because of the mounting of dues, it had to cut down on power supply. Once the dues are cleared, it is expected that the Adani Group will once again resume power supply in Bangladesh.
Conclusion:
The Adani Bangladesh project has been one of the most remarkable projects to have been taken up by the Adani Group in near future. This project has not only strengthened ties between the two nations but has also improved energy security.
Once the current economic situation in Bangladesh normalises, the group once again plans on supplying electricity to Bangladesh as per the PPA which was signed earlier. This will help restore energy security in the country. The people will of Bangladesh will also be able to lead their lives in a better manner.