Bangladesh Crisis: Country Owes Over $1 Billion To These Five Indian Power Firms, Says Report

Bangladesh Power Crisis: Out of the $1 billion, nearly $800 million are due towards Adani Power, which supplies electricity to the neighbouring country from its Jharkhand plant

Bangladesh Power Crisis: Bangladesh reportedly owes more than $1 billion to five Indian power companies that supply electricity to the country, media reports said. Majority of these dues are towards Adani Power, which supplies electricity to the neighbouring country from Jharkhand plant.

Citing industry executives in the know, The Economic Times reported that the crisis-hit country owes nearly $800 million to Adani Power alone. The firm supplies power via a dedicated transmission corridor from its 1.6 GW coal-fired plant based in Godda, Jharkhand.

Other companies include SEIL Energy India, NTPC, PTC India, and Power Grid Corporation of India. The country owes about $150 million to SEIL Energy, as on June 30, 2024, while the dues towards NTPC stand at nearly $80 million. PTC India is owed about $84.5 million, as of March end, and Power Grid’s dues from Bangladesh stand at $20 million. The report noted that PTC received $46 million out of the overall dues from the country, as of August 25, 2024.

Bangladesh has a power purchase agreement for 250 MW with SEIL Energy, while NTPC provides 740 MW power to the country from three plants. PTC supplies 250 MW of power to the Bangladesh Power Development Board via West Bengal State Electricity Distribution Co.

Citing a government official, the report noted that some firms have experienced problems related to payment, where a portion of it is also related to coal purchase. Meanwhile, the power companies have continued supplying electricity to the country without any disruptions. The executives attributed this to the friendly relations between India and Bangladesh, the report said.

However, one of the officials raised concerns that this cannot continue for long as the firms are answerable to their stakeholders. “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,” one of the executives said in the report.

Notably, the country went through a major political turmoil and saw mass protests resulting in the breakdown of the previous government led by Sheikh Hasina. Now, Nobel laureate Muhammad Yunus is leading the country and trying to stabilise the economy.