Adani group to resume power to Bangladesh under new terms. But readies a backup.

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Subscribe to enjoy similar stories. Mumbai: Following intense negotiations over five days, the Adani group lifted a crucial power supply deadline imposed on the Bangladesh government after the crisis-hit nation conceded fresh repayment terms for dues worth about ₹7,500 crore. The Indian conglomerate, however, is embarking on a Plan B for its only exports-focused electricity plant if Bangladesh’s assurances don’t pan out, said two persons with direct knowledge of the matter.

Adani group had set a 7 November deadline for the neighbouring country’s government to either clear the dues or face a power cut that could affect at least 10% of Bangladesh’s electricity consumers. Adani Power Ltd began supplying electricity to Bangladesh from its 1,600 MW Godda Thermal Power Station in Jharkhand last year, marking the group’s entry into transnational power projects. The deal also marked India’s first transnational power supply project and remains an essential element in India-Bangladesh ties.

While Bangladesh’s monthly electricity bill for Adani Power’s supply alone adds up to $90-95 million ( ₹750-800 crore), the country, hit both by an economic and political crisis, was paying only $20-40 million every month, said one of the two persons mentioned above. As the dues kept mounting over the past year and after a letter of credit expired in July, Adani group in October decided to shut one of the two units at its Jharkhand plant, halving its power supply to Bangladesh to 750-800 MW. However, things changed over the weekend.