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Adani Power Reduces Electricity Supply to Bangladesh Over Unpaid Dues

NSE: ADANIPOWER: Rs.596.90 at 1 Nov, 7:00 pm IST

On October 31st, Adani Power Jharkhand Limited (APJL), a subsidiary of the Adani Group, cut its electricity supply to Bangladesh by more than half due to outstanding dues. The supply was reduced from 1,496 MW to around 700 MW, intensifying Bangladesh’s energy deficit by over 1,600 MW.

Prior to this action, APJL had requested Bangladesh’s Power Development Board (PDB) to settle overdue payments by October 30th. In a letter addressed to Bangladesh’s power secretary, the Adani Group noted that PDB had neither arranged a Letter of Credit (LC) of $170.03 million from Bangladesh Krishi Bank nor paid off an existing debt of $846 million.

APJL warned that failure to make the payments would compel them to “take remedial action under the Power Purchase Agreement (PPA) by suspending power supply on October 31.” The initial deadline for suspension had already been extended from October 20th to October 30th, prior to the implemented supply cut.

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