After the Indian company significantly reduced its electricity delivery, Bangladesh is raising payments to Adani Power in an effort to prevent severe power outages. Due to an unpaid debt of around US $ 800 million, Adani, which provides roughly 10 per cent of Bangladesh’s electricity from its 1,600 megawatt coal-fired plant in eastern India, previously cut power delivery in half.
Initial partial payments are being handled, senior officials from the Bangladesh Power Development Board (BPDB) have stated. “We have resolved payment issues and have already given the Adani group a letter of credit worth US $ 170 million,” a BPDB official said. But if the outstanding debt is not paid by 7th November, Adani has threatened to stop all supply.
Industries that depend on reliable electricity have been significantly impacted by the power crisis, particularly the ready-made garment (RMG) sector, which is essential to the nation’s export revenue. The RMG sector is finding it more and more difficult to sustain output levels as export earnings decline due to global price increases and supply chain interruptions.
Fouzul Kabir Khan, the interim government’s energy advisor, voiced dissatisfaction with Adani’s supply disruptions in spite of the government’s attempts to increase repayments. The administration is dedicated to resolving the problem without permitting any electricity producer to exercise excessive influence, he underlined.
Experts caution that Bangladesh’s social stability and economic growth may be hampered by the continuous power outages. Demand for power is predicted to decline as winter draws near, but the nation’s reliance on pricey alternative sources is probably going to make matters worse financially.
Bangladesh plans to diversify its energy mix in response to the electricity supply crisis by putting its first nuclear power station online in December. The facility was constructed with Russian assistance and cost US $ 12.65 billion, mostly paid for by long-term loans from Russia.
It has never been more urgent to find quick and long-term solutions to guarantee energy security in Bangladesh given the current dire circumstances.
