Adani Power, a prominent Indian energy supplier, has further decreased electricity supplies to Bangladesh, seeking to recover approximately $800 million (Ksh.103 billion) in outstanding payments.
Adani Power exports power to Bangladesh from its dedicated 1,600 MW Godda plant in Jharkhand, India. The electricity supply was recently scaled back to between 700 and 750 MW, down from around 1,400-1,500 MW in early August.
As of late Thursday, the power supply has dropped even further, reaching about 520 MW, according to data from Power Grid Bangladesh and a source at the Bangladesh Power Development Board (BPDB).
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Bangladesh continues to receive less power from Adani Power despite accelerating payments. A BPDB official noted that Adani's initial deadline of November 7 for clearing dues has been lifted.
However, the South Asian country recently issued a letter of credit for $170 million (Ksh.21.9 billion) to Adani Power to expedite payments amid ongoing negotiations.
Bangladesh’s economic woes, stemming from high costs of imported fuel and goods since the 2022 Russia-Ukraine conflict, have made it difficult to manage its energy bills. The recent political upheaval, including the removal of former Prime Minister Sheikh Hasina in August, has further exacerbated these challenges.
Muhammad Fauzul Kabir Khan, the energy advisor in Bangladesh's interim government, assured that the country is addressing the outstanding payments and considering alternative options if power supplies are further reduced. "We will not let any supplier hold us hostage," he affirmed.
Adani Power has attributed the reduction in supply to Bangladesh's demand levels and the significant unpaid dues.
Due to authorization restrictions, both Adani Power and BPDB officials declined to speak publicly, and Adani Power has yet to respond directly to media inquiries about the supply reductions and Bangladesh’s recent payments.
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