Bangladesh has made significant progress in settling its outstanding dues with India’s Adani Power, paying nearly $1.2 billion of the total $2 billion owed under a 2017 power-supply agreement. Despite facing financial strains due to increased import costs following the Russia-Ukraine conflict and domestic political upheaval, Bangladesh has resumed steady payments to Adani Power. As a result, Adani Power has restarted full power supply to Bangladesh, with payments now exceeding the monthly billing amount.
The power-supply agreement was initially impacted by Bangladesh’s financial difficulties, leading Adani Power to reduce its supply by half last year. However, with the current flow of payments, the company has restored full supply, allowing Bangladesh to cover some of the outstanding dues and alleviate part of the financial burden. Adani Power’s chief financial officer, Dilip Jha, expressed optimism about recovering the remaining $900 million, citing the recent increase in payments as a positive sign.
Adani Power remains confident that the ongoing payment arrangements with Bangladesh will eventually clear the remaining debt. The company’s confidence is driven by the fact that payments are now more than sufficient to meet the monthly billing requirements. The resolution of this financial issue would mark a significant step forward for both parties involved in the agreement. Bangladesh’s progress in settling its dues is a positive development, and Adani Power is hopeful that the old outstanding dues will be liquidated soon.
The payment of nearly $1.2 billion by Bangladesh is a significant milestone, and Adani Power is reassured that the remaining debt will be cleared. The company’s optimism is a positive sign for the future of the power-supply agreement, and it is likely that the agreement will continue to benefit both parties. Overall, the progress made by Bangladesh in settling its dues with Adani Power is a significant development, and it is likely to have a positive impact on the company’s financials and the overall energy sector.