The Bangladesh Power Development Board (BPDB) is paying around Tk1,234 crore, or $100 million, a month to Adani Power for electricity supplied from its Godda power plant in India, gradually reducing the outstanding dues owed to the Indian power producer.
The monthly payments are slightly higher than Adani Power’s current electricity billing requirements, allowing the company to recover its outstanding receivables over time, according to a report by an Indian daily.
Adani Power’s outstanding receivables from Bangladesh stood at around $400 million, equivalent to approximately Tk5,000 crore, as of June, the report said.
Speaking at the company’s annual general meeting, Adani Power Chief Executive Officer SB Khyalia said BPDB has been making regular payments.
“We have been receiving regular payments. Last month also we received $100 million. So, on average, every month we are getting $100 million in payment. We expect to continue receiving this $100 million from BPDB every month,” he said.
According to the Adani Power official, the monthly payments are currently slightly higher than the company’s monthly billing requirement. This has helped improve cash realisation and gradually reduce the outstanding receivables.
“This is slightly higher than our monthly bill, so we expect that receivables and liquidity realisation will also improve over time,” he said.
The regular payments come as Bangladesh and Adani Power continue to deal with several unresolved issues related to the electricity supply agreement.
Adani Power has approached the Singapore International Arbitration Centre (SIAC) to resolve the outstanding disputes. Representatives from both sides have been appointed to work with an arbitration expert, and an agreement has already been signed for the process.
The company has expressed optimism that the arbitration proceedings will result in an acceptable resolution of the disputed issues.
Adani Power supplies electricity to Bangladesh from two 800-megawatt units at its Godda power plant in Jharkhand. The plant can supply up to 1,500MW to Bangladesh daily, making it a significant source of electricity for the country.
Bangladesh’s electricity demand typically rises to around 18,000MW during the summer, while average generation remains between 14,000MW and 15,000MW. Demand generally falls below 10,000MW during winter.
