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Adani Rejects Request For Concession For Its Adani Bangladesh Project

As per the Bangladesh government, Bangladesh currently owes the Adani Group around 650 million USD for the Adani Bangladesh project. However, the company has mentioned that the estimated outstanding dues have reached nearly 900 million USD. Once the dues are cleared, the Adani Group will be able to ensure that the power agreement between the Adani Group and the Bangladesh government continues to exist.

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Adani Rejects Request For Concession For Its Adani Bangladesh Project

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  1. ADANI REJECTS REQUEST FOR CONCESSION FOR ITS ADANI BANGLADESH PROJECT

  2. Adani Power has taken up the decision to fully restore the power supply in Bangladesh from its Godda power plant. However, the group has rejected discount requests. As per the Bangladesh government, Bangladesh currently owes the Adani Group around 650 million USD for the Adani Bangladesh project. However, the company has mentioned that the estimated outstanding dues have reached nearly 900 million USD. Once the dues are cleared, the Adani Group will be able to ensure that the power agreement between the Adani Group and the Bangladesh government continues to exist. Bangladesh will also no longer have to suffer from frequent power blackouts.

  3. Adani’s Recent Decision To Fully Resume Power Supply From The Adani Bangladesh Power Plant: Adani Power has recently taken up the decision to completely restore the 1,600 MW power supply from the Adani Bangladesh power plant. However, the group has rejected Dhaka’s request for tax benefits and discounts. The restoration has been followed by a request from the Bangladesh Power Development Board amidst the rising summer demands. Despite agreeing to resume the power supply to Bangladesh, the Adani Group has declined PBDB’s request for concessions and discounts. This would be potentially worth millions of dollars.

  4. The Non-payment Of Dues For Power Supplied From The Power Plant: As per Bangladesh, it owes the Adani Group around 650 million USD. However, company sources have mentioned that the outstanding dues have already reached around 900 million USD. The 2 million USD Adani Bangladesh power plant operates under a 25-year power purchase agreement (PPA). This power purchase agreement was signed between the Adani Group and the BPDB in 2017. This power plant had reduced supply on 31st October because of the non-payment of dues. Since 1st November 2024, the facility has been operating at minimal capacity.

  5. The Adani Group has also highlighted that BPDB has not yet provided a 170.03 million Letter of Credit from Bangladesh Krishi Bank. It has also not cleared the accumulated amount of 846 million USD. In winter, Bangladesh imported around 1,000 MW per month from the Adani Bangladesh power plant. With full supply expected to resume in the next few weeks, it remains uncertain how the unpaid dues will affect the long-term agreement. As per the Bangladesh government, the country is trying its best to clear the dues. Once the dues are cleared, the Adani Group can continue to supply power from its power plant without any hustle. It will also ensure that the Adani Group’s presence in the international power sector is enhanced.

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