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Adani wants $310m power dues
M Azizur RahmanPublished :
Sep 06, 2023 11:17 PM
Updated :
Sep 06, 2023 11:18 PM
Indian conglomerate Adani Group presses for clearing $310-million overdue payments against power purchase by Bangladesh government from their Jharkhand plant, sources say, as arrears go ballooning.
The outstanding payments are set to climb up to $380 million within the next couple of weeks unless payment is made soon, a senior power ministry official told the FE.
Bangladesh is already struggling to pay dues to many independent power producers (IPPs), including oil-fired rental and coal-fired plants, according to the sources.
Despite some payments made over the past one month, the Bangladesh Power Development Board (BPDB) currently owes around Tk 180 billion ($1.63 billion), Bangladesh Independent Power Producers Association (BIPPA) president Faisal Khan told the FE.
Adani Power Jharkhand Ltd (APJL), a wholly-owned subsidiary of Adani Power Ltd, meanwhile, claimed to have achieved commercial operations date (COD) of its second 800MW Godda ultra-supercritical thermal plant on 26 June in Jharkhand.
The first unit having 800-megawatt capacity of electricity generation achieved its COD on April 06.
Sources said power purchase from Jharkhand turned out to be a 'much-debated' venture since initiation of electricity supply from the facility.
Soon after the start of power supply, it is alleged, the BPDB sought a revision of the power-purchase agreement (PPA) with Adani Power for importing electricity from its Jharkhand plant, "to no avail though".
The power board was expecting the incorporation of a 'discount' provision into the PPA, according to sources.
"The absence of the provision has allowed the Indian firm to quote higher bill for coal," says a senior BPDB official.
The BPDB has similar provisions in the PPAs with other coal-fired independent power producers, he added.
Usually, the international price of coal is calculated benchmarking Newcastle Price Index tagged with quantity and calorific value, which enables a buyer to avail discounts up to 55 per cent on the bulk value.
The PPA between BPDB and Adani Power was signed in November 2017 for 25 years and electricity be transmitted through 400kV dedicated transmission line connected with Bangladesh's national power grid, operated and managed by Power Grid Company of Bangladesh Ltd (PGCB).
Earlier, Transparency International Bangladesh (TIB) also called for reconsideration and, if necessary, cancellation of the PPA with Adani Group.
The graft watchdog in its February statement expressed deep concern, saying that Bangladesh's power sector could be held hostage if the deal to buy 1,600MW from the 'controversial' Adani Power is executed by the BPDB.
Its suggestion was made 'for the sake of national interest", especially considering that the final burden of the agreement will be borne by the people.
The TIB suggested a thorough analysis of the terms of the agreement involving experts in the relevant sectors, formation of amendments where applicable and termination of the agreement, if necessary.
Pointing to information published by reliable international sources, including the Australia-based Adani Watch, TIB said, "The coal used in the Godda power plant will come from disputed mines owned by Adani in Indonesia and Australia."
Even the coal will be carried by Adani ships, which will be unloaded at Adani-owned ports and transporting will be done by Adani-owned railways. Again the generated electricity will be transported through the transmission line built by Adani, it added.
According to the statement, Adani's Godda project will have to be paid capacity charge at an unacceptably high rate compared to any other project undertaken by domestic and foreign ventures.
The local chapter of the Berlin-based agency (TIB) urged BPDB and the policymakers concerned of the government to revise the terms and conditions of the deal on an urgent basis.
Any official of the Adani power plant was not available for comment.
azizjst@yahoo.com
Adani wants $310m power dues
Indian conglomerate Adani Group presses for clearing $310-million overdue payments against power purchase by Bangladesh government from their Jharkhand plant, sources say, as arrears go ballooning. The outstanding payments are set to climb up to $380 million within the next couple of weeks unless
