Outstanding Dues Exceeding $1 Billion Owed by Power Companies to Bangladesh

Five Indian power companies that provide electricity to Bangladesh are facing outstanding dues exceeding $1 billion, according to industry executives familiar with the situation. One of the major companies involved is Adani Power, which operates a 1.6 GW coal-fired plant in Godda, Jharkhand, and supplies electricity through a dedicated transmission corridor. Adani Power alone is owed approximately $800 million of this total amount.

The executives mentioned above have highlighted the fact that despite the outstanding dues, these companies have maintained their power supply to Bangladesh, showcasing the strong friendship between the two nations. However, they have also cautioned that this arrangement cannot persist indefinitely, as the companies are accountable to their stakeholders.

Total Dues

According to an ET report, as of June 30, 2024, SEIL Energy India is owed around $150 million. The company has a power purchase agreement for 250 MW with Bangladesh. NTPC, another major player in the industry, is owed nearly $80 million for supplying about 740 MW from three of its plants.

PTC India, which supplies power to Bangladesh, has outstanding dues amounting to approximately $84.5 million. The company has received $46 million until August 25 but is still owed $79 million by the neighboring country. Power Grid Corporation of India is also owed $20 million by Bangladesh.

An official from Adani Power acknowledged the situation but declined to comment on the specific amount owed by Bangladesh. One executive from a power company emphasized the urgency of finding a resolution, warning that failure to do so would make it challenging to sustain the power supply. The executive highlighted the need for upfront payments to lenders, coal suppliers, spare parts providers, and other essential services related to plant operations.

The Godda plant, which became fully operational in July 2023, relies on imported coal for power generation. Adani Power had previously stated that the electricity supplied from the plant would positively impact Bangladesh by replacing the expensive power generated from liquid fuel. According to sources, Adani has continued to provide power as per the schedule set by the Bangladesh Power Development Board.

Despite the challenges, these companies are committed to supporting Bangladesh with their power supply. However, the issue of outstanding dues needs to be addressed swiftly to ensure the sustainability of operations and maintain strong bilateral relations between India and Bangladesh.