Bangladesh Power Cut: India's neighboring country Bangladesh is facing a power crisis. Adani Power Jharkhand Limited (APGL) has reduced its power supply to Bangladesh by half due to outstanding bills of $846 million. Adani Power Jharkhand Limited (APJL), a wholly-owned subsidiary of power company Adani Power, has reduced power supply from its power plant since Thursday night, thus Bangladesh is getting less power supply than its total requirement. 

Why Bangladesh is engulfed in darkness

According to a report published in the 'Daily Star', data from Power Grid Bangladesh PLC has revealed that many cities in Bangladesh are plunging into darkness as there is a power shortage of about 1600 MW. Bangladesh had reported a power shortage of more than 1600 MW between Thursday and Friday night. Adani Power's plant with a capacity of about 1496 MW is now producing only 700 MW of electricity from one unit. This is the reason why neighboring country Bangladesh, which was already a victim of a terrible political crisis, is now facing new problems.

The root cause of the power crisis- What did Adani say in favor? Know here

Adani Power said that PDB has neither provided a loan facility of $170 million from Bangladesh Krishi Bank nor paid the outstanding amount of $846 million, due to which the company is forced to cut power in the country.

Adani Power had already written a letter requesting to pay the dues

Before the power cut, Adani Company had written a letter to the Energy Secretary of Bangladesh requesting that Bangladesh Power Development Board (PDB) be asked to pay the outstanding amount by 30 October. In a letter written on 27 October, the Adani Group company had said that if the pending bills are not paid, it will be forced to take action under the Power Purchase Agreement. After no action was taken on this, Adani Power suspended the power supply on 31 October.

What is Bangladesh's stand

PDB quoted an official as saying that a part of the previous dues was paid earlier, but since July APJL has been charging more than in previous months. He said that PDB is paying around $18 million every week, while the charges are going up to more than $22 million and this is the reason for the pending payments increasing again.

Why Bangladesh is unable to pay the pending payment of Adani Power

Regarding the additional payment, the same official said that when PDB raised questions about the price of coal in February last year, a supplementary agreement was signed. In it, the Adani Group company was bound to keep the prices lower than the rates set by other coal-based power plants. According to the report, after the completion of the one-year supplementary deal, Adani Power has again started charging as per the Power Purchase Agreement.