‘Past govt was negotiating $2.0 billion loan with India to meet power dues’

The past government in Bangladesh led by Sheikh Hasina was negotiating a loan of about $2.0 billion with the Indian government to meet its power sector dues to Indian companies, including Adani Power.

“An interest subsidy of about 2 per cent was also under consideration to make things easier for it,” according to a report published by The Hindu Business Line on Sunday.

However, the talks were suspended after the ouster of the Sheikh Hasina-led government.

“No moves have yet been made to renew the loan negotiations with the new interim government led by Muhammad Yunus,” the report added.

Sheikh Hasina was forced to flee Bangladesh on August 5 amidst widespread protests against her government. After that Nobel Peace Prize-winning economist Muhammad Yunus formed an interim government in Bangladesh on August 8.

Due to a dollar crisis, Bangladesh had been struggling to pay its import bills, including power dues, for some time since the Russia-Ukraine crisis started in 2022.

Adani Power has been exporting electricity to Bangladesh from its dedicated 1,600-megawatt (MW) power plant in India’s Jharkhand.  Apart from Adani Power, there are about four other Indian power companies that provide electricity to Bangladesh.

According to the report, all of the companies are facing outstanding dues, including $800 million of Adani Power.

Citing sources, the report said, “There are no indications that the Yunus government had tried to revive talks for the proposed loan yet.”