Adani seeks Md Yunus’s assistance in getting $800 mn in payments cleared
Gautam Adani (Photo: Bloomberg)
Adani Group chairman Gautam Adani has approached Muhammad Yunus, the chief advisor to the Bangladesh government, requesting his assistance in expediting the clearance of $800 million in outstanding payments owed by the Bangladesh Power Development Board to Adani Power for electricity supplies, according to a report by The Economic Times.
In a letter dated August 27, Adani wrote, “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 $800 million of receivables due from Bangladesh Power Development Board.”
Adani requested that routine bills be paid on a regular basis while continuing to fulfil supply commitments and further asked that substantial payments be made each month to reduce the outstanding dues.
Adani Power is owed $800 million by the Bangladesh Power Development Board for power supplied over the past eight to nine months.
Adani Power is supplying electricity to Bangladesh from its 1.6 GW coal-based power plant located in Godda, Jharkhand, using a dedicated transmission line. The company began supplying power from this plant in June last year.
Care Ratings reports that Adani Power has a 25-year power purchase agreement (PPA) with the Bangladesh Power Development Board at a favourable tariff, as mentioned in the report.
However, sources quoted by the report said that despite a monthly receivable of $90-95 million, the company is currently receiving payments of around $40-45 million, leading to a buildup of unpaid receivables.
In his letter, Adani stated that Adani Power invested $2 billion to develop the state-of-the-art plant and transmission infrastructure, completing the project within three and a half years, despite the challenges posed by three waves of the Covid-19 pandemic.
“I would like to reiterate our commitment to your country’s energy security and infrastructure development,” said Adani, as mentioned in the report. He further added that the group is eager to pursue opportunities where it can apply its infrastructure development expertise.
Adani Group, through its subsidiary Bangladesh Edible Oil Ltd, manages oil refineries in Rupshi, Narayanganj, and Mongla. Additionally, the group runs an integrated facility in Bogra focused on rice packaging and rice-bran oil production.
“We contribute to Bangladesh’s food supply through popular edible oil and premium rice brands such as Rupchanda, Meizan, and Fortune,” said Adani, as mentioned in the report.
First Published: Sep 10 2024 | 9:23 AM IST