Adani Group chairman Gautam Adani has reportedly approached Muhammad Yunus, the chief advisor to the Bangladesh government. The billionaire is looking for his intervention in expediting the clearance of $800mn owed to Adani Power by the Bangladesh Power Development Board for electricity supplies.
Adani Power provides electricity to crisis-hit country Bangladesh from its 1.6 GW coal-powered plant in Godda, Jharkhand, through a dedicated transmission corridor, according to a report by the Economic Times.
The company began supplying electricity from the Godda facility in June of last year. As per Care Ratings, the plant operates under a 25-year power purchase agreement with the Bangladesh Power Development Board.
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However, sources cited in the report revealed that instead of the expected monthly payment of around $90-95mn, Adani Power is receiving hardly 50 per cent of the amount. The company is receiving only $40-45mn which is in turn resulting in a growing backlog of receivables.
"The lenders have now been severe on us as we continue to meet our commitment to Bangladesh. I would request for your kind intervention in early liquidation of $800mn of receivables due from Bangladesh Power Development Board," Adani wrote in a letter, last month.
"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," he further added.
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Gautam Adani also stated that his power arm has invested $2bn in constructing a state-of-the-art power plant and its related transmission infrastructure. The project was completed in 3.5 years, despite facing challenges from three waves of the Covid pandemic.
"I would like to reiterate our commitment to your country's energy security and infrastructure development," Adani said.
Additionally, the company already has oil refineries in the Rupshi, Narayanganj and Mongla, which it operates via Bangladesh Edible Oil.
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