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Informist, Thursday, May 29, 2025

 

--Adani Power sources:Bangladesh sought $300-mln relief in Godda supply bill

--CONTEXT: Adani Power billed Bangladesh for 1.5 GW supply from Godda unit

--Adani Power sources: Bangladesh sought late fee, interest waiver in bill

--Adani Power sources: No dispute on $650-million Godda power buy dues

--Adani Power sources:To connect Godda unit to India transmission grid by Dec

--Adani Power sources: Connecting Godda to grid to help sell 600 MW in India

 

By Sunil Raghu

 

AHMEDABAD - The Bangladesh Power Development Board is learnt to have sought exemption of nearly a third of the pending $950-million bill raised by Adani Power Ltd. for supply of electricity from its Godda plant in Jharkhand, sources in the know told Informist.

 

"The Bangladesh Power board has sought exemption of nearly $300 million of the total $950 million bill pending with them. They have agreed on $650 million as dues but have sought relief from levy of late payment charges and interest costs thereof," said a senior Adani group official. "The levy of penalty for delayed payment and interest costs are as per the power purchase agreement and we are now holding talks (with Bangladesh authorities) to convince them of our stance."

 

Adani Power Jharkhand Ltd., a wholly-owned subsidiary of Adani Power, supplies a net 1,496 megawatt of power to Bangladesh from its ultra-supercritical thermal power plant in Godda. The Bangladesh Power Development Board had signed a power purchase agreement with Adani Power Jharkhand in November of 2017 to procure 1.5 GW net capacity power from Godda for 25 years. Adani Power began supplying power to Bangladesh from April 2023, and ramped it up to 1.5 GW from June 2023. The average monthly billing for this sale stood at $80 million to $90 million, as per Adani Power's management.

 

The unrest in bangladesh in late 2024 and a change of political leadership saw the country accumulating nearly $850 million in arrears after missing a series of payments. Following this, Adani Power cut power supply to Bangladesh by 50%, which it eventually restored to 100?ter four months. The Bangladesh government is reported to have sought renegotiation of the deal, claiming it was costlier than other similar power deals.

 

The Adani group official said the company was hopeful of resolving the issue "soon", calling it "routine" discussions under any contract. Recently, in its post-earnings analyst call, Adani Power's chief financial officer had said that the company was confident of recovering the pending dues from Bangladesh authorities. The Adani group spokesperson could not be contacted for the company's view on the matter.

 

Meanwhile, Adani Power is keen on connecting its Godda plant to the domestic transmission grid. This will provide Adani Power an option to sell power in the domestic market, whenever demand from Bangladesh falls. In August 2024, the central government revised guidelines to allow power plants exclusively exporting electricity to neighbouring countries to sell power domestically. "So far, we have no connectivity to transmission network to sell power in India and the revenue from sale of power in Bangladesh is at least two to two and a half times higher than merchant power being sold in India currently," the senior Adani group official said. Connection to the domestic grid might be completed by December and it could provide an opportunity to sell up to 600 MW of power in the domestic market, the official added.

 

At 1213 IST, shares of Adani Power were at INR 553 per share on the National Stock Exchange, up 0.5%.  End

 

US$1 = INR 85.48

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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