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India.com
4 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)
Business Recorder
4 days ago
- Business
- Business Recorder
PCDMA chief exposes rampant EFS exploitation
KARACHI: Salim Valimuhammad, Chairman of the Pakistan Chemicals & Dyes Merchants Association (PCDMA), has exposed rampant exploitation of the Export Facilitation Scheme (EFS), with fraudulent practices reportedly costing the national treasury a staggering Rs 25 billion. The veteran trade representative warned that the scheme, designed to boost exports, has instead become a pipeline for duty evasion and revenue leakage. Presenting import-export data analysis, Valimuhammad revealed that under Chapters 27 to 32 of chemicals & dyes - particularly 3204 - imports surged by 80% between 2023-2024 while corresponding exports showed no growth. 'This glaring discrepancy proves large-scale duty-free imports are being diverted to local markets instead of being used for export production,' he stated in a press release. The PCDMA chief provided a detailed breakdown showing that just for Chapter 3204 imports, the government should have collected approximately Rs 6 billion in Customs duty and Rs 18 billion in sales tax, totalling Rs 24-25 billion in potential revenue. However, actual collections remained alarmingly low, indicating massive leakage in the system. Valimuhammad proposed urgent reforms to curb EFS misuse, including immediate processing of 18% sales tax rebates and Customs duty refunds upon receipt of export remittances to improve cash flow for genuine exporters. His key recommendation was imposing a complete ban on duty-free imports under EFS without valid export Letters of Credit (LCs). Highlighting the scheme's distortive impact on trade, the PCDMA chairman noted a 25% decline in association membership over two years as regular importers couldn't compete with industries availing duty-free raw materials. 'While importers pay customs duty, income tax and additional sales tax, some industries get completely tax-free imports under EFS - this discriminatory treatment is destroying level playing field,' he argued. 'Dozens of legitimate importers of chamicals & dyes have been forced to shutter their businesses completely as a direct result of these scheme violations.' Expressing frustration over official inaction, Salim Valimuhammad revealed that despite submitting detailed budget proposals to FBR highlighting EFS anomalies and suggesting corrective measures, the association has received no response. He made a direct appeal to Prime Minister Shehbaz Sharif, Finance Minister Muhammad Aurangzeb and FBR Chairman Rashid Mahmood Langrial to immediately restrict EFS benefits only to actual export production and completely disallow duty-free imports without verified export LCs. Copyright Business Recorder, 2025
