Bangladesh owes a sum of $1 billion to five power companies including Adani Power, SEIL Energy, NTPC, PTC and the Power Grid Corporation of India
Amidst the ongoing Bangladesh political and economic tensions, nearly five Indian power companies face uncertainty regarding payments. Bangladesh owes more than $1 billion to power companies including $800 million and $150 million to Adani Power and SEIL Energy India, respectively, as per an Economic Times report.
Billionaire Gautam Adani’s 1,600 MW Godda plant in Jharkhand supplies 100 per cent of electricity generated by it to Bangladesh. SEIL Energy India has a power purchase agreement for 250 MW with the neighbouring nation.
Three plants of National Thermal Power Corporation (NTPC) supplies nearly 740 MW to Bangladesh and the country owes them $80 million. Additionally, since 2013 Power Trading Corporation of India (PTC) gives 250 MW of power to the Bangladesh Power Development Board from West Bengal State Electricity Distribution Co. Bangladesh owes $79 million to PTC and nearly $20 million to Power Grid Corporation of India.
Although there’s no disruption in power supply, the officials in the ET report said dues owed by Bangladesh will pose difficulty in continuity of supply.
“We need a solution soon, else we will find it difficult to continue the supply of power, especially when lenders, suppliers of coal, spares, other commodities, and plant operation-related services need upfront payment,” said an executive of one of the five power companies in ET report.
The economic issues that the country is going through has been highlighted by Bangladesh Bank’s newly appointed Governor Ahsan H. Mansur in a Bloomberg interview.
“If we don’t pay them, they will stop providing electricity,” said the Governor.
To ease its financial stress, Bangladesh has seeked World Bank’s help as per a BBC report. The country asked for $1.5 billion from World Bank and $1 billion from the Asian Development Bank and the Japan International Cooperation Agency.