Admin
27 August 2024
No joke this.
Inquiry revealed that Godda-based Adani power among five Indian electricity firms owed over $1 bn by Bangladesh amid financial turmoil.
In just one case, Bangladesh owed nearly $ 800 million to Adani Power. This Godda in Jharkhand-based company supplies electricity from its 1.6 GW coal-fired plant through a dedicated transmission corridor.
Adani power is no odd case.Four more Indian power companies that supply electricity to Bangladesh are owed more than $1 billion by Bangladesh.
For instance, SEIL Energy India is owed around $150 million as of June 30, 2024, under its power purchase agreement for 250 MW with Bangladesh.
Every body knows that Bangladesh has recently experienced severe political unrest. It also owes NTPC nearly $80 million for supplying around 740 MW of electricity from three of its plants.
Meanwhile, PTC India, which supplies 250 MW of power from West Bengal State Electricity Distribution Co to the Bangladesh Power Development Board, is owed $79 million, although it managed to recover $46 million by August 25.
Power Grid Corporation of India is owed $20 million. Despite the significant outstanding payments, these companies have continued to supply power to Bangladesh. However, this situation may not be sustainable indefinitely, as companies must maintain financial stability.
Adani power Godda plant, which uses imported coal and was fully commissioned in July 2023, was expected to provide a more cost-effective alternative to liquid fuel-generated electricity in Bangladesh.
However, the company now faces challenges in sustaining operations without payment, particularly when dealing with upfront costs for coal, spares, and other operational necessities.
The financial strain in Bangladesh has been exacerbated by ongoing political turmoil, which recently resulted in the ousting of the previous administration amid violent protests.
Bangladesh Bank’s newly appointed Governor, Ahsan H Mansur, has confirmed the substantial debt owed to Adani Power, acknowledging the critical importance of settling these payments to ensure continued electricity supply.
Under pressure of no payment of dues, these Indian companies are learnt to be in financial crisis. If they stopped supplying power to trouble torn neighbour, people of Bangladesh will face blackouts with far-reaching social, economic and diplomatic consequences.
Already, anti-India and anti-Hindu sentiments have gripped the people of Bangladesh.
