Govt speeds up Adani payments

The Power Division has replied to Gautam Adani's letter to Prof Muhammad Yunus, chief adviser to the interim government, saying the government will clear its dues within the shortest possible time. 

The Power Division said Bangladesh Power Development Board (PDB) paid $29.5 million to Adani Power between August 8, when the interim government was sworn into office, and September 11.

Gautam Adani, the chairman of Adani Group, wrote to the chief adviser on August 27, seeking his intervention in clearing around $800 million in overdue payments for power produced by Adani's 1,496 megawatts (MW) Godda power plant in Jharkhand, India.

The Power Division officials said the chief adviser's office forwarded the letter to the relevant authority, which sent a reply on September 15.

The Daily Star has seen a copy of the letter, signed by an additional secretary to the Power Division.

It said the payments had been in low amounts as foreign exchange reserves had dropped, an issue that is slowly easing due to measures taken by the interim government.

The letter added that there has been an improvement in payments after the interim government came to office compared to those made since June.

A Power Division source said they had paid Adani Power an additional $30 million after September 11.

In total, the interim government has paid Adani Power around $60 million.

"The PDB has been making periodic payments. However, from June 2024, we have been experiencing some foreign exchange constraints," the letter reads.

The Power Division assured Adani that the PDB would continue its efforts to ensure the payment of the overdue amount within the shortest possible time.

"Please accept the renewed assurances of our highest consideration," the letter read.

The Daily Star tried to reach PDB Chairman Md Rezaul Karim over the phone for the past two days to no avail.

According to the PDB officials, Bangladesh's average monthly bill for power purchases from Adani Power is around $90 million to $100 million.

However, the PDB has been able to pay only $20 million to $30 million for the past 8-10 months, thereby accumulating arrears of around $800 million.

Since August, Adani Power repeatedly requested the interim government to immediately clear the dues, sending letters to the PDB, the Ministry of Power, Energy and Mineral Resources, Bangladesh Bank and the chief adviser.

The PDB signed a 25-year power purchase agreement with Adani Power in November 2017, which can meet around 10 percent of the country's peak power demand.