Deadline set for Bangladesh to clear up power bills

Adani Group has set November 7 as deadline for the Bangladesh Power Development Board (BPDB) to settle outstanding dues and provide a letter of credit (LC) of $170 million (around Rs 1,500 crore) to ensure security of payment.

Following BPDB's failure to issue a letter of credit in line with their power purchase agreement, Adani Power Jharkhand reduced electricity supply to Bangladesh, exacerbating the country's ongoing power shortages. Currently, Adani's Godda plant is supplying only 724 MW, far below its capacity of 1,496 MW.

According to the Industry sources, payment delays have led to increased arrears, with BPDB paying only $90 million in October, while previous months saw payments between $20-50 million against monthly bills of $90-100 million.

This situation threatens the viability of Adani's operations, as Bangladesh is its sole customer.

Adani executives remain hopeful for a resolution, but the company is also exploring opportunities in the domestic market due to rising demand.