Adani Group warns Bangladesh for overdue power payment

The Adani Group of India has issued a stern message addressing the newly formed interim government of Bangladesh about clearing the dues.

The business group owned by Gautam Adani issued the warning in the backdrop of growing power overdue, UK-based Financial Times reports.

Quoting the report, India-based Economic Times said Bangladesh’s power overdue to Adani Group reached USD 500 million. The Adani Group has termed this condition as ‘unsustainable’.

The Adani Power, however, told the Financial Times in a statement that they are committed to continue supplying power to Bangladesh despite the financial constrictions.

The company said, “We are in constant dialogue with the Bangladesh government and have appraised them of this unsustainable situation where we are meeting not just our supply commitment but also (commitments) to our lenders and suppliers in spite of rising receivables.”

The Group reiterated its commitment to continue supplying power to Bangladesh saying, “Currently our Godda plant is not connected to the Indian grid and hence there is no question of looking for any alternate supply market.”

This power overdue came up as a great challenge for the interim government led by Dr. Muhammad Yunus, according to Economic Times.

The interim government was sworn-in last month following the fall of the Sheikh Hasina government in the face of a student-people mass uprising.

Since taking over, the government has been criticising the extravagant infrastructure deals negotiated by the previous government, including the agreement of purchasing power from the 1,600-megawatt Godda plant owned by the Adani Group.

This power overdue is a part of the overall energy crisis of Bangladesh. The country’s power related debts have reached USD 3.7 billion.

Energy adviser Muhammad Fouzul Kabir Khan told Financial Times that Bangladesh owes USD 800 million to the Adani Group of India. Bangladesh is late on the repayment of some USD 492 million.