The Bangladesh Power Development Board (BPDB) has issued a new $173 million letter of credit to Adani Power to help maintain electricity flow from its coal plant in Jharkhand. This move comes after Adani Power reduced its electricity supply to Bangladesh by half, citing unpaid dues of approximately $843 million. The LC was facilitated through Bangladesh’s Krishi Bank, with ICICI Bank as the Indian counterpart, marking the third such LC issued by BPDB to Adani. Past credits reportedly did not fully align with the terms of their power purchase agreement (PPA), a source told *The Economic Times*.
Adani Power’s Godda plant in Jharkhand supplies about 1,600 MW to Bangladesh, covering nearly 10% of the country’s power needs as per their 25-year PPA signed in 2015. Currently, Adani has requested an additional $15-20 million to restart one of the plant’s units that was recently shut down. Although BPDB has been making some payments, a portion is still outstanding, with monthly dues of $95-97 million challenging the BPDB due to Bangladesh’s foreign currency shortages and political instability following a recent government change.
The BPDB’s financial constraints have deepened, prompting Bangladesh’s interim government to request a $3 billion loan from the IMF, on top of an earlier $4.7 billion bailout. Adani Group Chairman Gautam Adani has appealed to Bangladesh’s leadership to expedite payment, warning in October that failure to settle the dues could result in a full suspension of power supply. Alongside Adani Power, other suppliers like SEIL, NTPC, and PTC India also play crucial roles in Bangladesh’s energy sector, highlighting the urgent need for stable foreign reserves to avert an energy crisis.
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