The interim government has expressed optimism that it will be able to make the payment to Adani Power of India with an accelerated effort and stressed that the government will not be hostage to any individual power producer, no matter how powerful they are.
“If it is true, we would say we are dismayed and very shocked,” said Chief Adviser’s Press Secretary Shafiqul Alam when his attention was drawn to a media report suggesting that Adani Power will suspend electricity supply to Bangladesh if the government does not resolve its payment issues by November 7.
Adani Group seeks new investment opportunity in Bangladesh
Speaking at a media briefing at the Foreign Service Academy, Alam said the relevant ministry in Bangladesh is yet to receive any such letter but there are efforts to expedite the payment to Adani.
He blamed the previous “dictatorship” and noted that the previous government is responsible for the payment backlog.
Alam said they are trying their best to accelerate the payment as the forex reserves started rising. “It has made a comeback. We hope we will be able make the international payment.”
Deputy Press Secretaries Aburba Jahangir and Mohammad Abul Kalam Azad Majumder were also present.
The Indian Ministry of External Affairs, however, said the government of India has no role in this contract.
“This issue is between two parties. There is a contractual obligation between them: one is a private organization and the other is the government of Bangladesh.
The government of India has no role in this contract,” MEA Spokesperson Randhir Jaiswal told reporters while responding to a question during a weekly briefing on Saturday.
The spokesperson said he does not have any further information to share with at this moment.
Adani Power of India said it will suspend electricity supply to Bangladesh if the government does not resolve its payment issues by November 7, according to a Times of India report
Following a reduction in power supply due to outstanding dues, Adani Power has set the deadline for the Bangladesh government to clarify the situation regarding the dues, which total nearly $850 million.
Earlier, Adani Power had set an October 31 deadline for the Bangladesh Power Development Board (BPDB) to settle the outstanding amount and provide a letter of credit (LC) of $170 million to ensure secure payment.
Although the BPDB attempted to issue an LC for the overdue amount through Krishi Bank, the effort did not align with the terms of the power purchase agreement, as reported by a TOI source. A shortage of dollars was mentioned as one of the reasons.
Adani Power Jharkhand reduced its supply from October 31, worsening the existing power shortages in Bangladesh.
As per the latest update on the Power Grid Bangladesh (PGB) website, on November 1, Adani’s plant in Godda (Jharkhand) supplied 724 megawatts against an installed capacity of 1,496 MW.