- By Kamal Kumar
- Sat, 02 Nov 2024 11:31 AM (IST)
- Source:JND
Adani Power Jharkhand Limited, a subsidiary of Adani Power slashed the electricity supply to neighbouring country Bangladesh due to unpaid bills worth over USD 846 million, the Daily Star reported. Power Grid Bangladesh data showed that APJL reduced the power supply to half, creating an immediate and severe challenge for electricity in the country.
The power cut was initiated on Thursday with a reduction of 1,600 megawatts (MW) overnight, the report stated, adding that the 1,496 MW plant is now operating at 700 MW from a single unit.
The company had also sent a letter to the Bangladesh Power Development Board (PDB), requesting them to clear the outstanding dues before October 30. However, the bills were not paid on time.
The letter had also warned the Bangladeshi side that a failure to clear the dues would lead to a suspension of power supply by October 31 under the Power Purchase Agreement (PPA).
Meanwhile, PDB said that the unpaid dues are due to the increased charges by the company. An official quoted by the report stated that they had cleared some previous dues, however, since July the Adani Power charges have increased to over USD 22 million weekly. While PDB was paying dues of around USD 18 million a week, the remaining amount caused the outstanding to grow.
The official further stated that last week’s payment to Krishi Bank couldn’t be processed due to a dollar shortage, which prevented the bank from opening a letter of credit.
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Following the conclusion of a one-year supplementary agreement that mandated reduced coal prices, Adani has reverted to pricing based on the original Power Purchase Agreement (PPA). This pricing model ties coal costs to Indonesian and Australian market indices, resulting in higher prices. Adani stated that, according to PPA provisions, they are entitled to claim capacity payments during any suspension of supply.
Earlier, Adani group chairman Gautam Adani also wrote a letter to Muhammad Yunus, the leader of the interim Bangladesh government on the issue.