Five Indian power companies face over $1 billion payment outage risk in Bangladesh
Last Updated on August 31, 2024 7:23 am
Around $800 million is owed to Adani Power, which supplies 1.6 GW from its coal-fired plant in Godda, Jharkhand, through a dedicated transmission corridor
Five Indian power companies contracted to sell electricity to Bangladesh are owed more than $1 billion, says The Economic Times.
Around $800 million is owed to Adani Power, which supplies 1.6 GW from its coal-fired plant in Godda, Jharkhand, through a dedicated transmission corridor.
SEIL Energy India is owed about $150 million as on June 30, 2024. It has a power purchase agreement for 250 MW with Bangladesh, where an uprising recently forced its Prime Minister to flee to India. NTPC, which supplies around 740 MW from three of its plants, is owed nearly $80 million.
PTC India had been owed about $84.5 million as of March end. Of this, it has got $46 million till August 25, the company said in an emailed response to ET’s query. It’s currently due $79 million from the neighbouring country. PTC supplies 250 MW of power to the Bangladesh Power Development Board from West Bengal State Electricity Distribution Co. It’s been doing so since 2013.
NTPC, SEIL Energy, and Power Grid did not respond to ET’s queries.
“Some companies have had issues related to payment, with some of it related to coal purchase as well,” a government official said.
No supply disruptions
The companies haven’t stopped supplies despite the dues, reflecting the strong bond of friendship between the two countries, said the executives cited above.
“But it cannot continue forever as they too are answerable to their stakeholders,” one of the persons said.
An Adani Power official acknowledged the issue but refused to comment on the dues owed.
“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 power companies listed above.
The Godda plant, which was fully commissioned in July 2023, uses imported coal. At the time of commissioning, the company had said the electricity supplied from the plant would have a positive impact on Bangladesh by replacing costly power generated from liquid fuel.
Adani has continued to supply power as per the Bangladesh Power Development Board schedule, said one of the persons cited above.