Adani Power has reduced electricity supply to Bangladesh, seeking payment of over Ksh.103 billion ($800 million) in overdue bills.
The electricity sent from India’s Godda plant dropped from 1,400-1,500 MW in August to around 520 MW in recent days.
Bangladesh has started paying the dues, but Adani has continued with the supply cuts.
Rising import costs and political issues have made it hard for Bangladesh to pay its bills.
Adani Power, an energy company from India, has reduced the electricity it sends to Bangladesh as the country owes Adani over Ksh.103 billion. Bangladesh, which relies on power from Adani’s Godda plant in Jharkhand, has seen the supply drop from 1,500 MW in August to just 520 MW recently.
Adani Power started cutting down the supply in August as Bangladesh’s payments were delayed. An official from the Bangladesh Power Development Board said that although Bangladesh has been trying to clear its dues, Adani has continued with the power cuts.
Bangladesh has opened a letter of credit worth Ksh.21.9 billion for Adani and is trying to speed up the payments. But due to high import costs of fuel and goods, worsened by the ongoing Russia-Ukraine war, paying bills has become more challenging for Bangladesh. The political shift in August that led to the removal of Prime Minister Sheikh Hasina has also added to the country’s struggles.
Adani Power’s decision to cut power highlights the financial difficulties faced by Bangladesh. While the country is working to clear its debts to Adani, it is also exploring options to avoid being solely dependent on one power supplier.
