Md Mojahidul Islam:
Bangladesh has announced that Adani Power’s unit has fully restored electricity supply after initially reducing it by half due to unpaid dues. The country has begun making regular payments, and supply was reinstated more than two weeks ago, helping to mitigate the risk of blackouts during the hot summer months.
Rezaul Karim, chairman of the Bangladesh Power Development Board (BPDB), stated on Thursday, “We’re making regular payments to Adani and receiving power as per our requirements.” However, he did not disclose the specific amounts of the payments or confirm whether past arrears have been settled.
Data from the BPDB indicates that Adani increased power supply over two weeks ago. In November, Adani Power Ltd. had reduced its output from a 1,600 megawatt coal-fired plant in Jharkhand, India, due to a series of missed payments from Dhaka, which was facing a foreign exchange crisis amid political instability. The restoration of this power supply is crucial for Bangladesh, especially during the sweltering summer months when temperatures can reach 38°C (100.4°F) or higher.
Following this news, Adani’s shares rose by up to 2% in Mumbai, although the stock has declined nearly 5% this year.
The outstanding dues, which had once exceeded $850 million, are now approximately $800 million, with plans to clear this amount within the next six months. To reassure Adani’s lenders and alleviate the company’s working capital issues, the BPDB has also provided guarantees, according to sources who spoke on condition of anonymity due to the sensitive nature of the information.
A representative from the Adani Group has not yet responded to requests for comments.
The resumption of power supply represents a significant step towards improving business relations between India and Bangladesh
