“The lenders have now been severe on us as we continue to meet our commitment to Bangladesh,” Adani wrote in a letter dated August 27, adding, “I would request for your kind intervention in early liquidation of $800 million of receivables due from Bangladesh Power Development Board.”
ET has seen a copy of the letter.
“May we request for regular payment of routine bills as we continue with our commitment on supplies and in addition significant tranches be made each month to liquidate outstanding dues,” Adani said.
ET had on August 27 reported that the Bangladesh Power Development Board owes Adani Power $800 million in power supply dues for a period of eight to nine months.
Adani Power supplies electricity to Bangladesh from its 1.6 GW coal-fired power plant in Godda, Jharkhand through a dedicated transmission corridor. Adani Power began supplying from the Godda plant last June. According to Care Ratings, the plant has a 25-year power purchase agreement with Bangladesh Power Development Board at a remunerative tariff.As against a monthly receivable of about $90-95 million, the company is being paid around $40-45 million, leading to an accumulation of the receivables, said people with knowledge of the developments. Adani Power did not respond to an email query.
Adani said in his letter that Adani Power has invested $2 billion in building a state-of-the-art plant and associated transmission infrastructure and delivered it in a record time of 3.5 years despite being impacted by three waves of Covid.
“I would like to reiterate our commitment to your country’s energy security and infrastructure development,” said Adani, adding that the group is keen to explore opportunities where it can leverage its expertise in infrastructure buildouts.
Adani Group through Bangladesh Edible Oil Ltd also operates oil refineries in Rupshi, Narayanganj, and Mongla. The group also has an integrated unit at Bogra for rice packaging and rice-bran oil processing.
“We contribute to Bangladesh’s food supply through popular edible oil and premium rice brands such as Rupchanda, Meizan, and Fortune,” said Adani, adding that he appreciates the support and cooperation received from authorities, local communities, and stakeholders in Bangladesh.