Adani Group Chairman Gautam Adani has reached out to Dr Muhammad Yunus, the chief advisor in Bangladesh’s interim government, seeking his help to expedite the clearance of $800 million in outstanding payments owed by the Bangladesh Power Development Board (BPDB) to Adani Power, according to a report by The Economic Times.
“The lenders have now been severe on us as we continue to meet our commitment to Bangladesh. I would request for your kind intervention in early liquidation of $800 million of receivables due from Bangladesh Power Development Board,” Adani wrote in a letter dated August 27.
Adani also urged that routine payments be made regularly to ensure the continuation of supply commitments, asking for substantial monthly payments to reduce the outstanding dues.
Adani Power has been supplying electricity to Bangladesh from its 1.6GW coal-fired power plant in Godda, Jharkhand, using a dedicated transmission line since June last year.
Adani Power is reportedly owed $800 million by the BPDB for power supplied over the past eight to nine months.
According to CARE Ratings, Adani Power has a 25-year power purchase agreement (PPA) with the BPDB at a favourable tariff, as mentioned in the report.
Sources quoted in the report said the company is supposed to receive $90-95 million monthly but is only getting around $40-45 million, leading to a significant backlog in unpaid dues.
In his letter, Adani highlighted the company’s $2 billion investment to build the Godda plant and transmission infrastructure, completing the project within three and a half years despite challenges from the Covid-19 pandemic.
He reiterated the group’s commitment to supporting Bangladesh’s energy security and infrastructure development, expressing interest in future opportunities to leverage Adani’s expertise in infrastructure projects.
Adani Group, through its subsidiary Bangladesh Edible Oil Ltd, manages oil refineries in Rupshi, Narayanganj and Mongla.
Additionally, the group runs an integrated facility in Bogra focused on rice packaging and rice-bran oil production.
“We contribute to Bangladesh's food supply through popular edible oil and premium rice brands such as Rupchanda, Meizan, and Fortune,” Adani wrote, as mentioned in the report.
