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Adani Power and Bangladesh
In November 2017, a power supply agreement was signed between Adani Power and the Government of Bangladesh. APJL has started supplying electricity to Bangladesh from 10 April 2023. Under this agreement, Adani Power will supply electricity to Bangladesh for the next 25 years. Adani Power's Godda plant supplies 1,496 MW of power per day. Adani Power supplies electricity to Bangladesh at the rate of Rs 10 to 12 per unit.
There are three major power generation plants in Bangladesh
Apart from Adani Power, there are three other big plants in Bangladesh that supply electricity. One plant is at Payra in Patuakhali district, generating 1,244 MW of electricity per day. The second Rampal plant is in Khulna division, which supplies 1,234 MW power per day. At the same time, the third Banskhali plant is in Chittagong, which produces 1,224 MW electricity per day.
Rampal plant is a joint venture between India and Bangladesh
The Pyra plant has been built with the help of China. While the Rampal plant is a joint venture between India and Bangladesh. Whereas Banskhali plant is owned by Bangladesh's big business house S Alam Group.
Mohammed Yunus government underpaid Adani Power
Adani Power's debt to Bangladesh is increasing because it has been underpaid. When Sheikh Hasina was in power, Adani Power was paid between $6 and $65 million per month. But it declined under the government of Mohammad Yunus. According to local media, Bangladesh paid Adani Power $31 million in July and August. $8.7 million was paid in September and $9.7 million in October.
Bangladesh asked to provide letter of credit of 17 million dollars
When the dues were increasing, Adani Power in the last week of October asked Bangladesh to pay by October 30. When pressure increased, Bangladesh asked for a letter of credit of $ 170 million (about Rs 1,500 crore). Adani Power accepted it. But when Bangladesh said that it would issue this letter of credit through an agricultural bank instead of a commercial bank, Adani Power rejected it.
Why am I not able to pay the amount?
Bangladesh has been struggling with economic crisis for a long time. Bangladesh's foreign exchange reserves are continuously declining. Government figures show Bangladesh's foreign exchange reserves stood at more than $25,823 million in June. Whereas by September it has decreased to $24,863 million.
Bangladesh is no longer able to pay such a huge amount
According to experts, the financial situation of Bangladesh is not such that it can give a huge amount to Adani Power. Bangladesh government cannot pay such a huge amount at present. Not only this, as soon as Mohammad Yunus assumed power, he also decided to review the agreement with Adani Power. His argument is that Adani Power is selling electricity at a very expensive price.
Now what next?
At present it is believed that Adani Power has given an ultimatum till November 7. If the matter is not resolved by then, Adani Power may stop power supply to Bangladesh. If this happens, it will have a negative impact on the economy.
Bangladesh cannot afford to buy more coal
There has been a major reduction in power generation at Rampal and Banskhali plants in Bangladesh due to non-availability of coal. In such a situation, if Adani Power also switches off electricity, blackout-like situations may occur. The situation is such that it is not able to buy more coal, because it already owes money to India, Indonesia, Australia and South Africa.
Adani Power will also be affected
If the power crisis deepens, the textile industry here will be hit the hardest. The garment industry is a major contributor to the economy of Bangladesh. The apparel and textile industry contributes more than 12% to its GDP. This will also affect its exports and further reduce foreign exchange reserves. However, the power supply shutdown will also impact Adani Power, as the Godda plant supplies power only to Bangladesh.
