Adani Power Payment: Amidst the ongoing political upheaval in Bangladesh, everything is not going well in the neighboring country. Recently, Adani Power owed more than Rs 7000 crore to the Bangladesh Power Board. After giving several reminders regarding the dues, Adani Power Jharkhand Limited (APJL) reduced the supply to the neighboring country by half. After this move by Adani Power, the situation in Bangladesh started deteriorating. After this, the Bangladesh Power Board has issued a new letter of credit (LC) of about Rs 1,450 crore to Adani Power to maintain an uninterrupted power supply.

There was a threat of cutting off the power supply.

According to a news published in the Economic Times, this step by the Bangladesh Power Board came after Adani Power threatened to reduce the power supply by half and stop the supply. An official associated with this matter said that this is the third letter of credit (LC) given by the Bangladesh Power Development Board (BPDB) to Adani Power. This letter of credit has been given by Bangladesh Krishi Bank, ICICI Bank is its counterpart in India.

Adani Power supplies 1,600 MW of electricity.
Adani Power supplies about 1,600 MW of electricity to Bangladesh from its coal-based plant in Goda, Jharkhand. Here Adani Power has two units of about 800 MW each. Adani Power has additionally demanded a payment of $15-20 million from BPDB, otherwise, the company will not restart the first unit of 800 MW, which was shut down by the company last week.

The agreement was signed for 25 years in 2015.
The company fulfills 10% of Bangladesh's electricity needs. Adani Power signed a 25-year power purchase agreement (PPA) with BPDB in 2015. Payments from BPDB are coming slowly because Bangladesh has been given a loan from the International Monetary Fund (IMF). The official said that Adani Power's due payment between July and October is about $400 million. Bangladesh has paid less than half of it.

Adani Power has to pay Rs 800 crore every month
for the electricity supply to Bangladesh. The monthly payment for the electricity supply is around 95-97 million dollars (about Rs 800 crore). Bangladesh's foreign exchange reserves declined amid the political turmoil that removed the Sheikh Hasina government in August. Bangladesh is facing challenges in generating and using dollar revenue to pay for electricity and oil.

Regarding this payment, Adani Power had written a letter to the Energy Secretary of Bangladesh a few days ago and requested that the Bangladesh Electricity Development Board (BPDB) be asked to pay the outstanding amount by 30 October. After this letter, BPDB has now paid about Rs 1450 crore. But Adani's dues are still more than Rs 5500 crore.