India’s Adani Group has set July as the deadline for the Bangladesh government to pay its power outstanding bills. The Bangladesh Power Development Board (PDB) Sunday received a letter from the Indian conglomerate in this regard.
Earlier, the Adani Group sent a letter to the authorities setting 7 November 2024 as the deadline to pay the dues. At that time, the company put pressure on the government speaking about shutting down production at a unit.
The Adani Group letter to the PDB says that the group owes $845 million from Bangladesh. The money has become outstanding for power it exported to Bangladesh until 6 January. If the money is not paid by June, PDB will have to pay a delay fee alongside the due.
A PDB official, however, told Prothom Alo that there is a dispute over the coal price in the bill. Adani has been calculating the coal price taking into account the method mentioned in the agreement while PDB has been calculating the bill considering the actual coal price. As a result, a discrepancy has appeared between the two calculations. According to the PDB, the amount of due is about $700 million. Despite the old dues, the money is being paid regularly.
Adani Group and PDB have been sending letters to each other over the dues for a long time.
The Adani powerplant is situated at Godda of Jharkhand in India. This coal-fired two-unit powerplant has a generation capacity of 1600MW. As per the agreement, Bangladesh will buy electricity from there for 25 years.
The first unit of Godda powerplant came into commercial generation in April 2023 while production at the second unit began in June that year. PDB signed the power import agreement with Adani Group in 2017.
The plant supplied up to 1500MW a day. A compromise on bill payment was reached when the company shut a unit in November last year. Then the Adani Group resumed power production in the closed unit. PDB also opened new LCs (Letters of credit) to pay the bills. Currently, loans are being paid under these letters of credit.
Adani Group has been producing power using one unit of the plant as the demand for electricity dips in Winter. Both the units are likely to go into production during the summer season from March.
PDB sources said the discussion between the representatives of Adani Group and PDB took place on 9 January. The issues of dues were discussed in that meeting. Following this, Adani Group sent this formal letter.
The letter, issued on 16 January, mentioned about the content of discussion and said the Adani powerplant has been suffering from a liquidity crisis as the dues have not been paid. Adani Group has offered a waiver of delay fee if the dues until December 2024 are paid by 30 June this year. The letter also requested the outstanding bills for the interests of both PDB and Adani Group.
Earlier, the Adani Group on 28 October 2024 sent a letter to the authorities to open a letter of credit by 30 October that year, as the PDB committed, to pay the money. Adani Group later shut production at a unit on 31 October as the PDB authorities could not do that.
PDB chairman Md Rezaul Karim told Prothom Alo Sunday that Adani Group reminded them earlier about paying the dues. Now the PDB received the formal letter today, Sunday. Now a decision will be taken about paying the dues.
Meanwhile, there are controversies over the contract signed with Adani Group under the Special Powers Act without floating any tender during the previous Awami League government.
The interim government, however, has already repealed the Special Powers Act, also known as the immunity act. Apart from this, a committee has been formed to review various contracts in the power sector.
The committee has also found several irregularities in the power purchase contract made with Adani Group. They are working on it. And, it is said that a recommendation may be made to amend the contract.
source : prothom alo
