Gautam Adani Seeks Assistance From Muhammad Yunus For Clearance Of $800 Million Power Dues

Gautam Adani urged that routine bills be cleared on a regular basis and requested substantial payments be made monthly to reduce the backlog of outstanding dues

Gautam Adani, chairman of Adani Group, has reached out to Muhammad Yunus, the Chief Advisor to the Bangladesh government, seeking help in expediting the clearance of $800 million in outstanding payments owed to Adani Power by the Bangladesh Power Development Board (BPDB). The payments are for electricity supplies made over the past eight to nine months, according to a report by The Economic Times.

In a letter dated August 27, Adani wrote, "The lenders have now been severe on us as we continue to meet our commitment to Bangladesh. I would request for your kind intervention in early liquidation of $800 million of receivables due from Bangladesh Power Development Board."

Adani urged that routine bills be cleared on a regular basis and requested substantial payments be made monthly to reduce the backlog of outstanding dues.

Adani Power has been supplying electricity to Bangladesh from its 1.6 GW coal-based power plant in Godda, Jharkhand, which was commissioned in June last year. The power is transmitted via a dedicated transmission line as part of a 25-year power purchase agreement (PPA) between Adani Power and BPDB.

Despite a monthly receivable of $90-95 million, the company is reportedly receiving payments of only $40-45 million, leading to a significant build-up of unpaid receivables.

In his letter, Adani highlighted the group's $2 billion investment in the Godda power plant and transmission infrastructure, which was completed within three and a half years despite the challenges posed by the Covid-19 pandemic. He reiterated Adani Group's commitment to Bangladesh’s energy security and infrastructure development.

Adani Group also has a strong presence in Bangladesh through its subsidiary, Bangladesh Edible Oil Ltd, which operates oil refineries and integrated facilities across the country. The group is involved in food production and distribution through popular brands like Rupchanda, Meizan, and Fortune. "We contribute to Bangladesh's food supply through popular edible oil and premium rice brands,” Adani wrote in his letter, further emphasizing the group's commitment to the country’s growth.