Staff Reporter :
Indian billionaire Gautam Adani’s power generation unit has resumed full electricity supply to Bangladesh, four months after reducing output by half due to unpaid dues.
Rezaul Karim, Chairman of the Bangladesh Power Development Board (BPDB), confirmed on Thursday that regular payments are now being made to Adani, and the country is receiving power as required.
However, he did not disclose the exact amount of payments or
whether the outstanding arrears had been settled.
According to BPDB data, Adani restored full power supply over two weeks ago.
The company had previously cut output from its 1,600-megawatt coal-fired plant in Jharkhand, India, in November due to repeated missed payments from Dhaka.
At the time, Bangladesh was grappling with a foreign exchange crisis amid a period of political transition.
The return to full supply is expected to help the country avoid power shortages during the summer months when temperatures can exceed 38°C (100.4°F).
Following reports of the resumed supply, Adani Power Ltd.’s shares rose by as much as 2 per cent in Mumbai. However, the stock remains down for the year.
Sources familiar with the matter revealed that Bangladesh’s outstanding dues to Adani, which had exceeded $850 million, have now reduced to $800 million. The remaining balance is expected to be cleared within the next six months.
The BPDB has also provided financial guarantees to reassure Adani’s lenders and ease the company’s working capital concerns, the sources added, speaking anonymously due to the sensitivity of the information.
The restoration of power supply marks a significant step towards mending business relations between Bangladesh and India.
