Adani to Begin Supplying Power from Second Facility After BPDB Payout

After more than three months of lower sales, when supplies were cut in half because of low winter demand and payment problems, Bangladesh has urged Adani Power to completely restore supplies from its 1,600 megawatt plant in India, according to a Bangladeshi official.

Adani has been receiving $85 million a month from the state-run Bangladesh Power Development Board (BPDB) to settle unpaid debts, and the board has now instructed the company to start supplying from the second facility.

Adani has been providing electricity from its $2 billion project in the Indian state of Jharkhand since entering into a 25-year contract with former Prime Minister Sheikh Hasina in 2017. Bangladesh is the exclusive market for the project, which has two 800 megawatt units.

On October 31, the Indian company cut its supply to Bangladesh in half because of payment delays while the nation struggled with a lack of foreign exchange. As a result, one unit was shut down on November 1st, leaving the facility running at about 42 percent capacity.

The 2017 agreement prices power rates based on an average of two indexes, which is at the center of the pricing controversy. The average cost of all Indian power sold to Dhaka is almost 55% lower than that of Adani's power in Bangladesh. According to the sources.

A court in Bangladesh has mandated that a group of specialists examine the contract with Adani; the findings are anticipated this month and could result in contract renegotiations