Adani Power Reinstates Electricity Supply to Bangladesh After Prolonged Suspension
After a nearly four-month hiatus, Adani Power has resumed its electricity supply to Bangladesh, marking a significant development in the energy sector. This decision comes after the company halted power deliveries over outstanding payments. Despite ongoing financial challenges, Bangladesh is now making monthly payments of approximately $90-95 million, yet older debts remain unsettled.
Current Financial Obligations
Reports indicate that Bangladesh currently owes $800 million to Adani Power, down from an initial $850 million. Sources suggest that these outstanding debts are expected to be resolved within the next six months. While the payments made by Bangladesh are sufficient to cover its current monthly energy consumption, there is assurance that previous dues will be addressed shortly.
- Outstanding Debt: $800 million (down from $850 million)
- Monthly Payments: $90-95 million
- Expected Clearance Timeline: Six months
Background on Power Supply Interruptions
The situation escalated in November when Adani Power reduced its electricity output from its 1,600-megawatt thermal power plant in Jharkhand due to multiple missed payments. This interruption coincided with Bangladesh facing a foreign exchange crisis and significant political changes.
Notably, Adani Power has increased its supply to Bangladesh in the past two weeks, as confirmed by data from the Bangladesh Power Development Board (BPDB).
Market Response
In response to the renewed power supply agreement, Adani Power’s stock has seen a positive shift, closing at Rs 519.65 on the Bombay Stock Exchange, reflecting a 4.39% increase from the previous day.
While an official statement from an Adani Power spokesperson has not been released, the company’s actions indicate a commitment to stabilize its operations with Bangladesh.
This development not only highlights the financial dynamics between Adani Power and Bangladesh but also points to the ongoing challenges in the region’s energy sector. For more insights into the energy market and updates on infrastructure developments, stay tuned to our latest reports.
