Adani threatens complete power cut to Bangladesh over unpaid dues

• 17 days ago (2024-11-04)
• David Flin

Asia 892 Coal 296 Transmission 191

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The Indian conglomerate Adani has warned that it is considering cutting all of its supplies of electricity to Bangladesh as a consequence of unpaid dues.

Adani-Jharkhand Power Limited operates a 1496 MW coal-fired power plant supplying Bangladesh. The power plant has already reduced its output by more than half, delivering only 700 MW since it first warned of service interruptions after Bangladesh failed to meet previous payment deadlines.

The current ultimatum demands clarity on the payment of $850 million of debts by November 7.

Muhammad Fouzul Kabir Khan, adviser on Power, Energy and Mineral Resources to the interim Bangladesh government, said: “Bangladesh has already paid $96 million for October and opened a letter of credit for $170 million. We are committed to resolving this issue. If Adani fully stops supplying power, we are ready to face the challenges.”

Some experts have suggested that Bangladesh may be able to manage electricity demand efficiently, especially with winter approaching. With the expected cooler temperatures, overall electricity demand typically drops, which is expected to last until February.