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India.com
3 days ago
- Business
- India.com
Good news to Gautam Adani from Bangladesh! Rs 37422276500 single largest payment made by…, resolves Adani's power…
Bangladesh made its largest single payment of USD 437 million in June, settling pending dues including carrying costs and power purchase agreement-related charges thereby reaffirming the Indian conglomerate's power asset as a reliable and cost-effective energy source for the country's growing needs, according to a PTI report citing sources. The report further added that Bangladesh has now become regular in its payments. Additionally, a Letter of Credit (LC) covering about two months of billing has been established, along with a sovereign guarantee for all outstanding dues as added security. Since payment-related matters are resolved, Bangladesh has asked Adani Power to supply power from both units as per BPDB (Bangladesh Power Development Board) schedule, they added. Bangladesh Clears Adani Power's Dues Report claimed that Bangladesh has resolved Adani Power's dues, including the carrying cost. Over the last 3-4 months, the country has been paying USD 90-100 million per month, and in June, it paid USD 437 million. The LCs are worth about two months of billing and sovereign guarantee for all dues, as additional security has put Adani in a very comfortable situation. Concerns raised related to investigations into the PPA by the Bangladesh authorities have been resolved, with no adverse aspects found. With all these developments, lenders are confident of improving APL's credit rating to AA+ from the current AA. How Adani Power Supplies Electricity To Bangladesh? Adani Power supplies electricity to Bangladesh from a dedicated 1600 MW plant located in Godda district of Jharkhand, meeting 10 per cent of the country's power demand. The company supplies among the most competitively priced power to Bangladesh, as is evident from BPDB's merit order dispatch data, which is an essential requirement. Bangladesh had in the past struggled to meet its payment obligations under the 2017 deal, as rising import costs following the Russia-Ukraine conflict in 2022 and domestic political turmoil, which led to the ouster of the prime minister strained the country's finances. As a result, Adani halved its supply last year, and full supplies were resumed in March 2025 after the country's monthly payments started covering some of the dues. PTI sources said over the last three to four months, Bangladesh had started paying USD 90-100 million per month, and in June, the company received the single largest chunk of payment of USD 437 million, thereby clearing all dues. Adani Power's Godda unit was housed under a separate subsidiary, which has now been merged with the parent, providing greater operational and financial synergy. With all these developments, lenders are confident of improving Adani Power's credit rating to AA+ from the current AA, which will further bring down its cost of funds. The current developments vindicate the contract established between the Bangladesh government and Adani Power. The Godda asset is now well integrated into the Bangladesh Power system successfully. (With Inputs From PTI)
Time of India
4 days ago
- Business
- Time of India
Bangladesh resolves Adani's power purchase pact, payment concerns
New Delhi: Bangladesh made its single largest payment of $437 million in June, clearing pending dues, including carrying costs, and issues related to the power purchase agreement , reaffirming the Indian conglomerate's asset as a reliable and cost-competitive power source for meeting the country's growing energy needs, sources said. Bangladesh is now regular in payments. Additionally, an LC (Letter of Credit) worth about two months of billing and sovereign guarantee for all dues as additional security has been established, sources aware of the matter said. Since payment-related matters are resolved, Bangladesh has asked Adani Power to supply power from both units as per BPDB ( Bangladesh Power Development Board ) schedule, they added. Sources said Bangladesh has resolved Adani Power's dues, including the carrying cost. Over the last 3-4 months, the country has been paying $90-100 million per month, and in June, it paid $437 million. The LCs are worth about two months of billing and sovereign guarantee for all dues, as additional security has put Adani in a very comfortable situation. Concerns raised related to investigations into the PPA by the Bangladesh authorities have been resolved, with no adverse aspects found. With all these developments, lenders are confident of improving APL's credit rating to AA+ from the current AA. Adani Power supplies electricity to Bangladesh from a dedicated 1600 MW plant located in Godda district of Jharkhand, meeting 10 per cent of the country's power demand. The company supplies among the most competitively priced power to Bangladesh, as is evident from BPDB's merit order dispatch data, which is an essential requirement. Bangladesh had in the past struggled to meet its payment obligations under the 2017 deal, as rising import costs -- following the Russia-Ukraine conflict in 2022 and domestic political turmoil, which led to the ouster of the prime minister -- strained the country's finances. As a result, Adani halved its supply last year, and full supplies were resumed in March 2025 after the country's monthly payments started covering some of the dues. Sources said over the last three to four months, Bangladesh had started paying $90-100 million per month, and in June, the company received the single largest chunk of payment of $437 million, thereby clearing all dues. Adani Power's Godda unit was housed under a separate subsidiary, which has now been merged with the parent, providing greater operational and financial synergy. With all these developments, lenders are confident of improving Adani Power's credit rating to AA+ from the current AA, which will further bring down its cost of funds. The current developments vindicate the contract established between the Bangladesh government and Adani Power. The Godda asset is now well integrated into the Bangladesh Power system successfully. Under the 2017 deal, Adani Power's Godda power plant in Jharkhand was to supply 100 per cent of the electricity generated from burning coal to Bangladesh for a period of 25 years. After payment defaults, Adani had cut supplies by half in November 2024. It restored full electricity supply, which is around 1,600 MW, in March after the country reduced its liabilities. Bangladesh stepped up repayments from July last year, clearing monthly dues. The development comes after the country suffered from increased power shortages in rural areas. It has been struggling to generate sufficient dollar revenues to cover the cost of essential imports like electricity, coal, and oil. Its foreign currency reserves declined amid months of student-led protests and political unrest, which culminated in the ousting of the Sheikh Hasina government in August 2024. The interim government that succeeded her sought an additional $3 billion loan from the International Monetary Fund (IMF), on top of the existing $4.7 billion bailout package. Adani's power deal with Bangladesh was one of many under Sheikh Hasina, which the current interim government has called opaque. Besides Adani Power, other Indian state-owned firms also sell power to Bangladesh, including NTPC Ltd and PTC India Ltd. PTI
Time of India
4 days ago
- Business
- Time of India
Bangladesh resolves Adani's power purchase pact, payment concerns
New Delhi: Bangladesh made its single largest payment of USD 437 million in June, clearing pending dues, including carrying costs, and issues related to the power purchase agreement , reaffirming the Indian conglomerate's asset as a reliable and cost-competitive power source for meeting the country's growing energy needs , sources said. Bangladesh is now regular in payments. Additionally, an LC (Letter of Credit) worth about two months of billing and sovereign guarantee for all dues as additional security has been established, sources aware of the matter said. Since payment-related matters are resolved, Bangladesh has asked Adani Power to supply power from both units as per BPDB ( Bangladesh Power Development Board ) schedule, they added. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 8 Ridiculous Expenses Americans Waste The Most Money On Betterbuck Read More Undo Sources said Bangladesh has resolved Adani Power's dues, including the carrying cost. Over the last 3-4 months, the country has been paying USD 90-100 million per month, and in June, it paid USD 437 million. The LCs are worth about two months of billing and sovereign guarantee for all dues, as additional security has put Adani in a very comfortable situation. Live Events Concerns raised related to investigations into the PPA by the Bangladesh authorities have been resolved, with no adverse aspects found. With all these developments, lenders are confident of improving APL's credit rating to AA+ from the current AA. Adani Power supplies electricity to Bangladesh from a dedicated 1600 MW plant located in Godda district of Jharkhand, meeting 10 per cent of the country's power demand. The company supplies among the most competitively priced power to Bangladesh, as is evident from BPDB's merit order dispatch data, which is an essential requirement. Bangladesh had in the past struggled to meet its payment obligations under the 2017 deal, as rising import costs -- following the Russia-Ukraine conflict in 2022 and domestic political turmoil, which led to the ouster of the prime minister -- strained the country's finances. As a result, Adani halved its supply last year, and full supplies were resumed in March 2025 after the country's monthly payments started covering some of the dues. Sources said over the last three to four months, Bangladesh had started paying USD 90-100 million per month, and in June, the company received the single largest chunk of payment of USD 437 million, thereby clearing all dues. Adani Power's Godda unit was housed under a separate subsidiary, which has now been merged with the parent, providing greater operational and financial synergy. With all these developments, lenders are confident of improving Adani Power's credit rating to AA+ from the current AA, which will further bring down its cost of funds. The current developments vindicate the contract established between the Bangladesh government and Adani Power. The Godda asset is now well integrated into the Bangladesh Power system successfully. Under the 2017 deal, Adani Power's Godda power plant in Jharkhand was to supply 100 per cent of the electricity generated from burning coal to Bangladesh for a period of 25 years. After payment defaults, Adani had cut supplies by half in November 2024. It restored full electricity supply, which is around 1,600 MW, in March after the country reduced its liabilities. Bangladesh stepped up repayments from July last year, clearing monthly dues. The development comes after the country suffered from increased power shortages in rural areas. It has been struggling to generate sufficient dollar revenues to cover the cost of essential imports like electricity, coal, and oil. Its foreign currency reserves declined amid months of student-led protests and political unrest, which culminated in the ousting of the Sheikh Hasina government in August 2024. The interim government that succeeded her sought an additional USD 3 billion loan from the International Monetary Fund (IMF), on top of the existing USD 4.7 billion bailout package. Adani's power deal with Bangladesh was one of many under Sheikh Hasina, which the current interim government has called opaque. Besides Adani Power, other Indian state-owned firms also sell power to Bangladesh, including NTPC Ltd and PTC India Ltd .
The Independent
28-03-2025
- Business
- The Independent
Adani restores full electricity supply to Bangladesh after four months
India 's top conglomerate Adani group has restored the full electricity supply to Bangladesh from an Indian power plant four months after it stopped the connection over unpaid dues. Adani Power was supplying critical 1,600 MW of electricity to Bangladesh only from a neighbouring Indian eastern state of Jharkhand. However, Adani had to halve the supply to the conflict-hit country on 31 October as Dhaka defaulted on payments while battling a foreign exchange shortage. The resumption of power supply to Bangladesh, which took place nearly two weeks ago, was confirmed by an official in Dhaka. 'We're making regular payments to Adani and receiving power as per our requirements," Rezaul Karim, chairman of the Bangladesh Power Development Board (BPDB), told Bloomberg on Thursday. The resumption comes almost a month after Adani Power said it had agreed to fully restore supply from a 1,600 MW India power plant to Bangladesh in a few days after a gap of three months but rejected Dhaka's request for discounts and tax benefits, two sources had told Reuters. The halving of power supply to Bangladesh by its neighbourhood conglomerate led to the shutdown of one of the two equal-sized units of the plant on 1 November, followed by Bangladesh's request to keep supplying only half the power, citing low winter demand and as the payment issue bubbled. Dhaka has been faltering on making payments to Adani Power since supply started in July 2023. India's neighbour to its east now owes several hundred million dollars for energy that has already been supplied, though the two sides dispute the exact size of the bill. According to an Adani source in December, Bangladesh Power Development Board (BPDB) owes Adani Power about $900m. However at the time, Mr Karim said the country's dues totalled only to about $650m. The pricing dispute revolves around how power tariffs are calculated. BPDB earlier wrote to Adani Power seeking tax benefits worth millions of dollars and resumption of a discount programme that ran for a year until May.
Express Tribune
11-02-2025
- Business
- Express Tribune
Bangladesh asks Adani to resume power supplies
Listen to article NEW DELHI: Bangladesh has asked Adani Power to fully resume supplies from its 1,600-megawatt plant in India, a Bangladesh official said, after more than three months of reduced sales with supplies halved due to low winter demand and payment disputes. Adani, which signed a 25-year contract under former Prime Minister Sheikh Hasina in 2017, has been supplying power from its $2 billion plant in India's Jharkhand state. The plant, with two units each of 800 megawatts capacity, sells exclusively to Bangladesh. The Indian company halved supply to Bangladesh on October 31 due to payment delays as the country battled a foreign exchange shortage. This led to the shutdown of one unit on November 1, resulting in the plant operating at about 42% capacity. Subsequently, Bangladesh told Adani to keep supplying only half the power. The state-run Bangladesh Power Development Board (BPDB) said it had been paying $85 million a month to Adani to clear outstanding dues and has now told the company to resume supply from the second unit. "As per our requirement today, they have planned to synchronise the second unit, but due to the high vibration, it didn't happen," BPDB Chairperson Md Rezaul Karim told Reuters, referring to some technical problems that stopped the unit from restarting on Monday. "Right now, we are making a payment of $85 million per month. We are trying to pay more, and our intention is to reduce the overdue. Now there is no big issue with Adani." BPDB and Adani officials were due to meet virtually on Tuesday following another meeting recently to work out various issues between them, said a source with direct knowledge of the matter. An Adani Power spokesperson did not immediately respond to a request for comment. In December, an Adani source said BPDB owed the company about $900 million, while Karim said at the time the amount was only about $650 million. The pricing dispute revolves around how power tariffs are calculated, with the 2017 agreement pricing off an average of two indexes. Adani's power costs Bangladesh about 55% more than the average of all Indian power sold to Dhaka, Reuters has reported.
