Adani asks Md Yunus for help in obtaining $800 million in payments
Gautam Adani (Photo: Bloomberg)
Adani Group Chairman Gautam Adani has reached out to Muhammad Yunus, the chief adviser to the Bangladesh government, seeking his assistance in expediting the settlement of $800 million in outstanding payments owed by the Bangladesh Power Development Board to Adani Power for electricity supplies, a report by The economic times.
In a letter dated August 27, Adani wrote: “The lenders are now strict with us as we continue to meet our obligations to Bangladesh. I kindly request you to intervene in the early liquidation of $800 million of claims owed by Bangladesh Power Development Board.”
Adani requested that routine bills be paid on a regular basis and that delivery obligations be met at the same time. He further requested that substantial monthly payments be made to reduce the outstanding amounts.
Adani Power will receive $800 million from the Bangladesh Power Development Board for its power supply over the past eight to nine months.
Adani Power supplies electricity to Bangladesh from its 1.6 GW coal-fired power plant in Godda, Jharkhand, using a dedicated transmission line. The company began supplying electricity from the plant in June last year.
Care Ratings reports that Adani Power has a 25-year power purchase agreement (PPA) with the Bangladesh Power Development Board at a favorable rate, as stated in the report.
According to sources cited in the report, the company is currently receiving payments of around $40-45 million, despite a monthly receivable of $90-95 million. This is leading to a build-up of unpaid receivables.
In its letter, Adani stated that Adani Power invested $2 billion in developing the state-of-the-art power plant and transmission infrastructure. The project was completed within three and a half years, despite the challenges posed by three waves of the Covid-19 pandemic.
“I would like to reiterate our commitment to your country’s energy security and infrastructure development,” Adani said, as quoted in the report, adding that the group is keen to seize opportunities where it can apply its expertise in infrastructure development.
Adani Group, through its subsidiary Bangladesh Edible Oil Ltd, operates oil refineries in Rupshi, Narayanganj and Mongla. The group also operates an integrated facility in Bogra, focused on rice packaging and rice bran oil production.
“We contribute to the food security of Bangladesh through popular edible oil and premium rice brands such as Rupcanda, Meizan and Fortune,” Adani said, as stated in the report.
First publication: Sep 10, 2024 | 09:23 AM IST