Adani Power News: Adani Power Jharkhand Limited (APJL), a subsidiary of Adani Power, has cut power supply to Bangladesh. According to local media reports, Bangladesh has outstanding bills of about US $ 846 million. Currently, the company is supplying half the power to the neighboring country.

The Daily Star quoted Power Grid Bangladesh PLC as saying that the Adani plant has cut the supply by more than 1,600 MW on Thursday night. Because the 1,496 MW plant is now producing 700 MW of electricity from one unit.

Adani Power had warned
APJL had written a letter to the Power Secretary and urged the Bangladesh Power Development Board (PDB) to pay the outstanding amount by October 30. In the letter written on October 27, it was said that if the bills are not paid, the company will take action under the Power Purchase Agreement (PPA) by stopping the power supply on October 31. The company said that PDB has neither provided a Letter of Credit (LC) for the amount of US $ 170.03 million from Bangladesh Krishi Bank nor paid the outstanding amount of US $ 846 million. The Daily Star quoted a PDB official as saying that they had paid a part of the previous dues, but since July APJL has been charging more money than in previous months. He said that PDB is paying about US$18 million every week, while the charge is more than US$22 million. He further said, "This is why the outstanding payment has increased again." The official said that they had also deposited last week's payment to the Agricultural Bank, but due to shortage of dollars, the bank could not open a letter of credit for the payment. Meanwhile, about the additional payment, he said that when PDB questioned the price of coal in February last year, they had signed a supplementary deal. Under this, Adani was forced to reduce the price of coal to the rates charged by other coal-based power plants. But after a year, Adani has again started charging as per the PPA. What is PPA? According to the PPA, coal prices are calculated based on the average price of two coal indexes, which increases the prices. These indexes include the Indonesian Coal Index and the Australian Newcastle Index. Adani said that during the period of suspension of supply, the company reserves the right to recover capacity payments under Section 13.2 (1) of the PPA. The company has been pressuring the interim government for outstanding payments since Prime Minister Sheikh Hasina stepped down from power in the country. An interim government led by Nobel laureate Professor Muhammad Yunus was established in Bangladesh on August 8. Adani Group Chairman Gautam Adani has also written a letter to Chief Advisor Yunus.