Adani writes to Muhammad Yunus for clearance of $800 mn in power dues

Adani Group chairman Gautam Adani has written to Bangladesh government’s chief advisor Muhammad Yunus, requesting him to expedite clearance of $800 million that Bangladesh Power Development Board (BPDB) owes to Adani Power as pending electricity supply bill.

The pending bill is for electricity that Adani Power’s 1.6 GW power plant in Godda, Jharkhand, has been supplying to BPDB since June last year. The coal-operated Godda plant operates under a 25-year power purchase agreement with the Bangladesh Power Development Board.

BPDB is currently paying Adani Power hardly 50 per cent of the pending amount, a report in The Economic Times said, adding that instead of an estimated monthly payment of around $90-95 million, Adani Power was receiving around $40-45 million, which was resulting in a burgeoning backlog.

“The lenders have now been severe on us as we continue to meet our commitment to Bangladesh. I would request for your kind intervention in early liquidation of $800 million of receivables due from Bangladesh Power Development Board,” Adani wrote.

“May we request for regular payment of routine bills as we continue with our commitment on supplies and in addition significant tranches be made each month to liquidate outstanding dues,” he added.

Adani pointed out that $2 billion had been invested in setting up the state-of-the-art power plant in just three and a half years despite the impediment of three Covid waves during the pandemic years.

“I would like to reiterate our commitment to your country’s energy security and infrastructure development,” Adani said.

Apart from supplying power to BPDB through Adani Power, the Adani Group has oil refineries located in Rupshi, Narayanganj and Mongla of Bangladesh. These refineries are operated through Bangladesh Edible Oil.

Adani, who also owns the food and beverage brand Adani Wilmar, mentioned how his group contributes to Bangladesh’s food supply, too.

“We contribute to Bangladesh’s food supply through popular edible oil and premium rice brands such as Rupchanda, Meizan, and Fortune,” he wrote.