Adani Energy cuts electrical energy provide to Bangladesh over unpaid payments: Report

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Adani Energy Jharkhand Restricted (APJL), a subsidiary of Adani Energy, has halved its energy provide to Bangladesh as a consequence of unpaid payments amounting to USD 846 million, The Each day Star reported on Friday.

Adani Energy cuts provide to Bangladesh amid $846M unpaid payments.(REUTERS/Dado Ruvic)

Information from Energy Grid Bangladesh PLC confirmed that the Adani plant diminished its provide on Thursday evening, inflicting Bangladesh to expertise an influence shortfall of over 1,600 megawatts (MW) in a single day. The 1,496 MW plant is now working at 700 MW from a single unit.

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Earlier, Adani Energy had despatched a letter to the Bangladesh Energy Improvement Board (PDB) requesting fee of excellent dues by October 30. The letter, dated October 27, warned that failure to clear the payments would result in a suspension of energy provide by October 31 below the Energy Buy Settlement (PPA).

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Unpaid dues as a consequence of elevated prices: PDB

A PDB official mentioned that whereas they’d cleared some earlier dues, since July, Adani’s prices have elevated to over USD 22 million weekly, whereas PDB has been paying round USD 18 million, inflicting unpaid dues to develop.

Final week’s fee to Krishi Financial institution couldn’t be processed as a consequence of a greenback scarcity, stopping the financial institution from opening a letter of credit score, the official mentioned.

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After a one-year supplementary deal requiring decrease coal costs ended, Adani resumed pricing primarily based on the unique PPA, which calculates coal prices from Indonesian and Australian indices, elevating costs. Adani mentioned they will declare capability funds throughout any provide suspension per PPA guidelines.

Gautam Adani, chairman of Adani Group, additionally wrote to the Bangladesh’s interim authorities, led by Nobel Laureate Professor Muhammad Yunus, to handle the dues.