Several Indian power companies, including Adani Power, are desperate to collect their dues from Bangladesh. The companies are constantly increasing the pressure on the Bangladesh government to collect the increasing dues. Bangladesh said all creditors are being paid as per the plan. Apart from this, the review of Bangladesh's contract with Indian power companies including Adani is going on at the same time.
Fawzul Kabir Khan, Advisor on Power, Energy and Mineral Resources to the Interim Government of Bangladesh, told The Hindu BusinessLine, “All creditors' dues are being paid according to a plan.”
Regarding whether the power import agreement with Adani Power is being reviewed or not, Fawzul Kabir Khan said, 'The High Court has constituted an independent committee, in which the government has no representation. The court is probing 11 deals, including Adani Power's deal. The court is of the opinion that some additional benefit has been given (to Adani Power).'
An Adani Power source, speaking on condition of anonymity, said they are aware of the investigation, but have yet to be formally informed by any government. Meanwhile, a few days ago, Dhaka gave Adani Power an LC (Letter of Credit) worth $173 million or cleared the dues. Earlier, as a pressure tactic, Adani Power had given the Bangladesh Power Development Board (BPDB) a deadline of November 7 to clear the dues.
Another source related to Adani said that Dhaka wants to pay the dues on priority basis. However, Dhaka will initially pay another 160 million dollars. Because there is pressure on the country's foreign exchange reserves.
At present, the pending issues of the agreement of Indian power companies with Bangladesh are going on. Most of the project agreements were signed by the then Sheikh Hasina government of Bangladesh under a special law named Quick Enhancement Act of Bangladesh-2010. The aim of the Act was to facilitate effective and urgent arrangements for generation, transmission, transportation and marketing of electricity, so as to ensure uninterrupted supply of electricity in keeping with the demand for electricity. When the Inquiry Committee submits its report, there will be a clear idea as to whether some review of these agreements is required.
Apart from Adani Power, SEIL, Energy India and PTC are among the other Indian power exporters that are having trouble collecting their dues to Bangladesh. Meanwhile, both India and Bangladesh said that BPDB is maintaining regular contact with Indian companies. While some Indian companies—notably Adani—have threatened to completely cut off power supply, an official familiar with the matter said it would be difficult to completely cut off supply as the deal is signed.
Adani Power owes 850 million dollars to Bangladesh. But Bangladesh has already paid some amount. Besides, SEIL Energy India has already received $30 million, but still owes $180 million.
