Gautam Adani, chairman of the Adani Group, has known as upon Bangladesh’s authorities to swiftly settle the $800 million in unpaid dues owed by the Bangladesh Energy Improvement Board (BPDB) for electrical energy equipped by Adani Energy, reported the Financial Occasions.
The request, outlined in a letter dated August 27, was addressed to Muhammad Yunus, the nation’s chief advisor. Adani emphasised the necessity for instant motion to handle the monetary pressure attributable to the excellent funds.
In his letter, Adani expressed concern over the monetary stress his firm is going through.”We’re in fixed dialogue with the Bangladesh authorities and have appraised them of this unsustainable state of affairs the place we’re assembly not simply our provide dedication but in addition [commitments] to our lenders and suppliers regardless of rising receivables.”, reported the Monetary Occasions.
He urged the Bangladeshi authorities to intervene, stating, “I might request your form intervention within the early liquidation of $800 million of receivables due from Bangladesh Energy Improvement Board.”
Adani Energy provides electrical energy to Bangladesh from its 1.6 GW coal-fired energy plant in Godda, Jharkhand, which started operations in June 2023. The facility provide settlement with BPDB spans 25 years, however the firm has been receiving solely partial funds—roughly $40-45 million per thirty days in opposition to the anticipated $90-95 million. This shortfall has resulted in a backlog of dues over the past eight to 9 months.
Adani additionally requested Bangladesh to make common funds to keep away from additional accumulation of dues. “Could we request for normal fee of routine payments as we proceed with our dedication on provides, and as well as, vital tranches be made every month to liquidate excellent dues?” he added.
The Godda energy plant was constructed with a $2 billion funding and was accomplished in a report 3.5 years, regardless of disruptions attributable to the Covid-19 pandemic. Adani famous that the ability plant and the related transmission infrastructure had been constructed to fulfill Bangladesh’s power wants, reaffirming his firm’s dedication to supporting the nation. “I want to reiterate our dedication to your nation’s power safety and infrastructure improvement,” he stated.
The request for immediate fee comes at a essential time for Bangladesh’s interim authorities, led by Muhammad Yunus, which is grappling with monetary instability.
The brand new administration blames earlier opaque and expensive infrastructure offers for the financial challenges, with Yunus’s prime power adviser, Muhammad Fouzul Kabir Khan, acknowledging the numerous backlog. “We’ve been firefighting since becoming a member of [the government],” Khan stated, revealing that the whole energy liabilities stand at $3.7 billion, of which $492 million is owed to Adani Energy.
Regardless of the rising debt, Adani Energy has assured the federal government that it’ll proceed to offer dependable and competitively priced electrical energy. In a press release, Adani Energy stated, “We stay steadfast in our dedication and can proceed to provide dependable and competitively priced energy from our Godda facility to Bangladesh, regardless of mounting dues.”
Khan additionally indicated that the interim authorities is actively working to stabilise the nation’s funds, reaching out to worldwide lenders such because the World Financial institution for help. On the identical time, the administration is trying to renegotiate and overview present power contracts to make sure they’re more cost effective. “We do not need it to be discriminatory,” Khan defined. “Whoever will give us worth for cash, the bottom worth, and good high quality, we’ll select them.”
The facility cope with Adani, signed underneath former Prime Minister Sheikh Hasina, has lengthy been a topic of criticism, with activists claiming that the price of imported energy from Godda is just too excessive for Bangladesh. Nevertheless, Adani has defended the settlement, stating that “the price of energy could be very aggressive when in comparison with different imported coal-based energy crops.”
As Bangladesh continues to battle persistent power shortages, Adani reiterated his firm’s dedication to supporting the nation’s power necessities. He additionally dismissed rumours of searching for various markets for the ability generated at Godda, confirming that the plant is solely devoted to Bangladesh.
“At the moment, our Godda plant just isn’t linked to the Indian grid, and therefore there isn’t a query of on the lookout for any alternate provide market,” Adani acknowledged, affirming his hope for reciprocity from the Bangladeshi authorities in settling the overdue funds.
The request, outlined in a letter dated August 27, was addressed to Muhammad Yunus, the nation’s chief advisor. Adani emphasised the necessity for instant motion to handle the monetary pressure attributable to the excellent funds.
In his letter, Adani expressed concern over the monetary stress his firm is going through.”We’re in fixed dialogue with the Bangladesh authorities and have appraised them of this unsustainable state of affairs the place we’re assembly not simply our provide dedication but in addition [commitments] to our lenders and suppliers regardless of rising receivables.”, reported the Monetary Occasions.
He urged the Bangladeshi authorities to intervene, stating, “I might request your form intervention within the early liquidation of $800 million of receivables due from Bangladesh Energy Improvement Board.”
Adani Energy provides electrical energy to Bangladesh from its 1.6 GW coal-fired energy plant in Godda, Jharkhand, which started operations in June 2023. The facility provide settlement with BPDB spans 25 years, however the firm has been receiving solely partial funds—roughly $40-45 million per thirty days in opposition to the anticipated $90-95 million. This shortfall has resulted in a backlog of dues over the past eight to 9 months.
Adani additionally requested Bangladesh to make common funds to keep away from additional accumulation of dues. “Could we request for normal fee of routine payments as we proceed with our dedication on provides, and as well as, vital tranches be made every month to liquidate excellent dues?” he added.
The Godda energy plant was constructed with a $2 billion funding and was accomplished in a report 3.5 years, regardless of disruptions attributable to the Covid-19 pandemic. Adani famous that the ability plant and the related transmission infrastructure had been constructed to fulfill Bangladesh’s power wants, reaffirming his firm’s dedication to supporting the nation. “I want to reiterate our dedication to your nation’s power safety and infrastructure improvement,” he stated.
The request for immediate fee comes at a essential time for Bangladesh’s interim authorities, led by Muhammad Yunus, which is grappling with monetary instability.
The brand new administration blames earlier opaque and expensive infrastructure offers for the financial challenges, with Yunus’s prime power adviser, Muhammad Fouzul Kabir Khan, acknowledging the numerous backlog. “We’ve been firefighting since becoming a member of [the government],” Khan stated, revealing that the whole energy liabilities stand at $3.7 billion, of which $492 million is owed to Adani Energy.
Regardless of the rising debt, Adani Energy has assured the federal government that it’ll proceed to offer dependable and competitively priced electrical energy. In a press release, Adani Energy stated, “We stay steadfast in our dedication and can proceed to provide dependable and competitively priced energy from our Godda facility to Bangladesh, regardless of mounting dues.”
Khan additionally indicated that the interim authorities is actively working to stabilise the nation’s funds, reaching out to worldwide lenders such because the World Financial institution for help. On the identical time, the administration is trying to renegotiate and overview present power contracts to make sure they’re more cost effective. “We do not need it to be discriminatory,” Khan defined. “Whoever will give us worth for cash, the bottom worth, and good high quality, we’ll select them.”
The facility cope with Adani, signed underneath former Prime Minister Sheikh Hasina, has lengthy been a topic of criticism, with activists claiming that the price of imported energy from Godda is just too excessive for Bangladesh. Nevertheless, Adani has defended the settlement, stating that “the price of energy could be very aggressive when in comparison with different imported coal-based energy crops.”
As Bangladesh continues to battle persistent power shortages, Adani reiterated his firm’s dedication to supporting the nation’s power necessities. He additionally dismissed rumours of searching for various markets for the ability generated at Godda, confirming that the plant is solely devoted to Bangladesh.
“At the moment, our Godda plant just isn’t linked to the Indian grid, and therefore there isn’t a query of on the lookout for any alternate provide market,” Adani acknowledged, affirming his hope for reciprocity from the Bangladeshi authorities in settling the overdue funds.
