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Bangladesh fast tracks payment to Adani Power after supply cut

Bangladesh is speeding up payment of more than $800 million it owes Adani Power ahead of a Nov. 7 due date set by the Indian company, which has actually cut electrical power exports to Bangladesh by more than half, two senior government officials said.

Adani Power, which exports power to Dhaka from its 1,600 megawatt (MW) Godda plant in eastern India's Jharkhand state, set the due date for invoice of dues as it faces difficulties in importing coal necessary for power generation, 3 sources knowledgeable about the matter said.

The company, owned by billionaire Gautam Adani, reduced the power supply to Bangladesh this month to 700-800 MW from around 1,400 MW, a senior official at the Bangladesh Power Development Board told Reuters.

The authorities spoke on condition of privacy due to the fact that they were not authorised to talk with the media.

Adani Power did not react to Reuters questions on the payment deadline.

Bangladesh has actually been having a hard time to pay its costs due to expensive fuel and products imports given that Russia attacked Ukraine in 2022. The political chaos that caused the ouster of former Prime Minister Sheikh Hasina in August has also compounded its difficulties.

Last month, we cleared $96 million, and this month, a. letter of credit has actually been opened for an additional $170. million, Muhammad Fouzul Kabir Khan, the power and energy. advisor in the interim Bangladesh government, informed Reuters.

Last month, sources familiar with the matter told Reuters. that Bangladesh was scrutinising its contract with Adani Power,. as it was charging Bangladesh a rate nearly 27% greater than. those of India's other personal producers.

Adani Power Chief Financial Officer Dilip Kumar Jha, in a. quarterly incomes conference call last week, said there were no. concerns related to the power supply to Bangladesh.

We hope that there will be no additional degeneration in. terms of the impressive, he said.

(source: Reuters)