“Adani Group reveals a $500 million payment dispute with Bangladesh’s interim government over the controversial Godda power project. Despite the financial backlog, Adani Power maintains its commitment to delivering reliable electricity.”
INVC NEWS
Mumbai : Adani Group has alerted Bangladesh’s new interim government that $500 million in payments due from the controversial Godda power project have reached “tentative” stage, reports the Financial Times. Adani Power emphasised its continued communication with the Bangladesh government, highlighting the challenges posed by rising receivables, while maintaining its supply commitments to both the government and its lenders.
Despite the growing backlog of payments, Adani Power reaffirmed its commitment to providing reliable and competitively priced power to Bangladesh from the Godda facility. The interim government, led by Nobel laureate Muhammad Yunus, has been tasked with reviving the economy following the ouster of former Prime Minister Sheikh Hasina.
On August 12, just a week after Hasina left Bangladesh, the power ministry amended its rules to allow power plants that export only to neighbouring countries to also sell their electricity within India. A Financial Times report indicated that Bangladesh’s total power liabilities had reached $3.7 billion by mid-last week, with Yunus’ senior energy adviser Muhammad Fouzul Kabir Khan revealing that the country owed Adani about $800 million.
Khan noted that the interim government has sought financial assistance from various lenders, including the World Bank, in an effort to stabilise the country’s economy, saying, “Since joining [the government], we have been putting out fires.” Yunus assumed the role of chief adviser to the interim government in August following weeks of student-led protests over government job reservations, which eventually led to Hasina’s resignation and departure from the country.
