Adani Group sets June deadline to settle outstanding bill

Adani Group has given Bangladesh’s Power Development Board (PDB) until June to settle an outstanding electricity bill of $845 million for supplies made until January 6.

In a letter to the PDB on Sunday, the Indian conglomerate warned that late fees will apply if the bill is not paid by the set deadline, as per the terms of the contract.

Adani had previously set a deadline for November 2023, during which it also shut down one of its units to pressure the PDB into making the payment.

Citing a dispute over the coal price used in the bill, a senior official from the PDB said that Adani calculates the cost based on a contractual clause, while PDB does it using the actual coal price.

While Adani claims the outstanding dues amount to $845 million, PDB estimates it to be around $700 million, he said.

However, despite the ongoing dispute, the official clarified, regular payments are still being made.

Adani’s power plant, located in Godda, Jharkhand, India, has a capacity of 1,600 MW, with two 800 MW units.

Under a 2017 agreement, Bangladesh is to purchase electricity from the plant for 25 years.