Adani Seeks Bangladesh Government's Help in Recovering $800 Million Payment
Gautam Adani, chairman of the Adani Group, has requested assistance from Muhammad Yunus, the chief advisor to the Bangladesh government, in expediting the clearance of $800 million in outstanding payments owed by the Bangladesh Power Development Board (BPDB) to Adani Power for electricity supplies.
In a letter dated August 27, Adani highlighted the financial strain caused by the delayed payments. He emphasized Adani Power's commitment to fulfilling its supply obligations despite the challenges and requested Yunus' intervention to facilitate the early liquidation of the outstanding dues.
Adani Power has been supplying electricity to Bangladesh from its 1.6 GW coal-based power plant in Godda, Jharkhand, since June 2022. The company has a 25-year power purchase agreement (PPA) with BPDB at a favorable tariff.
However, despite a monthly receivable of $90-95 million, Adani Power is currently receiving payments of around $40-45 million, leading to a buildup of unpaid receivables. This has caused financial difficulties for the company, which invested $2 billion to develop the power plant and transmission infrastructure.
Adani reiterated the group's commitment to Bangladesh's energy security and infrastructure development. He expressed eagerness to pursue further opportunities to contribute to the country's progress.
Adani Group also has a presence in Bangladesh's edible oil and rice sectors through its subsidiary Bangladesh Edible Oil Ltd. The group manages oil refineries and an integrated facility for rice packaging and rice-bran oil production. Adani highlighted the group's contribution to Bangladesh's food supply through popular brands like Rupchanda, Meizan, and Fortune.