The Hindu: Published on December 03, 2024:

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Winter Chill: Bangladesh halves power purchase from Adani Power amid dispute

Bangladesh has reduced its power purchases from Adani Power by half, citing lower winter demand and a dispute over unpaid dues of approximately $900 million. This follows Adani's supply cut on October 31 due to delayed payments. The ongoing disagreement is also fueled by Adani's higher power rates compared to other suppliers, with Bangladesh calling for price reductions amidst its foreign exchange challenges.

The Story So Far:

Dispute Over Payments: Bangladesh owes Adani about $650 million, with mounting dues.

Supply Reduction: Adani cut power supply due to delayed payments, later agreeing to continue supplying at half capacity.

Price Concerns: Adani charges the highest rate per unit compared to other Indian suppliers, adding to Bangladesh’s financial burden.

Government’s Position: Bangladesh is pushing for lower prices or a review of the contract, citing the need for subsidies due to high costs.

Key Issues:

Financial Tensions: The mounting dues have strained the relationship, impacting Adani's debt profile.

Energy Prices: Bangladesh seeks to reduce the cost of power, which is higher than the retail price.

Ongoing Negotiations: Both parties are in discussions, but no resolution has been reached regarding the power purchase agreement.