Adani Enterprises Ltd (NSE: ADANIENT): Amidst the US dispute, the Adani Group has suffered another setback.
The latest news is that Bangladesh has cut in half the amount of electricity it purchases at Adani Power, citing low demand for winter electricity.
In the meantime, a dispute over hundreds of millions of dollars in dues between two sides is being resolved.
Officials from the government told Reuters the previous day that Bangladesh has cut down on the electricity it purchases from neighboring Indian power company Adani Power, citing low demand during winter.
What Is The Detail?
Adani reduced the amount of food available in its products to Bangladesh on the 31st of October, due to the delay in paying.
Bangladesh is currently experiencing an exchange rate crisis.
Officials have said that after this Bangladesh demanded Adani to provide only half of the electricity needed in the meantime, even though the company will pay previous fees.
The past has seen US government officials accuse the Adani Group of bribery and fraud. However, it is the Adani Group has denied these accusations.
Mohammad Rezaul Karim, chairman of the state-owned Bangladesh Power Development Board (BPDB) declared that they were both shocked and angry after they reduced the power they supply.
The demand for winter has decreased which is why they’ve said there’s no need to operate both plants.
Adani is providing electric power from a two-billion-dollar power plant in India’s eastern region of Jharkhand.
Two units are at the plant. Each can produce approximately 800 megawatts.
Two BPDB sources said that Bangladesh received approximately 1000 megawatts every month from Adani this winter.
They added that Adani had requested the board to tell them when it would be able to resume regular purchases but hadn’t received any concrete answers.
An Adani Power spokesman said the company would continue to supply the power needed by Bangladesh however, the old dues remained a major issue.
Quick Fact
| Company name | Adani Power |
|---|---|
| Current issue | Electricity purchase reduced by Bangladesh |
| Reason | Low winter demand and payment delays |
| Payment issue | Bangladesh facing exchange rate crisis |
| Plant location | Jharkhand, India |
| Plant cost | ₹2 billion |
| Plant capacity | Two units, 800 MW each |
| Current supply | 1000 MW/month during winter |
| Demand change | Electricity purchases reduced by Bangladesh |
| Dispute | Dues of hundreds of millions of ₹ remain |
| Past accusations | Bribery and fraud by US officials |
| Response to accusations | Denied by Adani Group |
| BPDB reaction | Shocked and angry |
| Resumption status | Awaiting confirmation from Bangladesh |
| Possible impact | Reduced operations of both power units |
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