Zakir Hossain / Dhaka
Bangladesh has asked Adani Power to restore full electricity supply as agreed in the original pact, three months after a faceoff with the Indian firm over unpaid dues.
“During winter, when demand dropped, we required less supply,” said Rezaul Karim, chairman of the Bangladesh Power Development Board. But as temperatures gradually increase, the country has asked Adani Power to increase the supply, he added.
Adani Power, which halved the electricity supply in November as unpaid dues crossed $850 million, is considering the proposal, people familiar with the the discussions said, requesting not to be named as the information is private.
Struggling with a foreign exchange crisis and aiming to avoid blackouts in summer, Bangladesh is also working to prevent another dispute with Gautam Adani’s power company over outstanding payments. “We are paying Adani Power almost $85 million per month in dues, and payments will increase if the financial condition improves,” Karim said. An Adani Group representative declined to comment on Bangladesh’s request.
Adani Power pared electricity supply to Bangladesh from its 1,600 megawatt coal-fired plant in Indian state Jharkhand as delayed payments led to mounting pressure from Indian lenders and a working capital crunch. Karim said a technical issue at the plant had delayed the additional supply and the board was carrying out an inspection to estimate extra electricity power required.