The Bangladesh government has requested full power supply restoration from the Adani Godda power plant which was responsible for contributing a majority of the power supply in Bangladesh. The Adani Group had earlier cut down the power supply from the power plant to half because of various ongoing controversies surrounding the plant. However, it will resume power supply once the pending dues are cleared and the two parties can come to terms on the project.
Adani Group To Resume Full Power Supply From Its Godda Power Plant:
The Bangladesh government has recently asked Adani Power to resume full supplies from the 1600 MW Adani Godda power plant in India. This is after over 3 months of the supplies being halved because of low winter demand and ongoing payment disputes. The Adani Group had earlier signed a 25-year contract with the Bangladesh government under the former Prime Minister Sheikh Hasina in 2017. Since then, the company has been supplying power from its 2 billion USD power plant in Jharkhand. The plant comes with two units each with a capacity of 800 MW. It sells power exclusively to Bangladesh.
What Caused The Adani Group To Reduce Power Supply To Bangladesh?
The Adani Group had earlier halved the supply to Bangladesh from the Adani Godda power plant on October 31st, 2024. This was because of payment delays as the country was dealing with foreign exchange shortages and political turmoil. This led to the shutdown of unit one of the power plant on November 1st, 2024. This caused the plant’s operation to be at 42% capacity. Subsequently, the Bangladesh government also asked the Adani Group to keep supplying only half the power from its power plant.
The state-run Bangladesh Power Development Board (BPDB) has been paying 85 million USD a month to the Adani Group in order to clear the outstanding dues. Now it has decided to receive power from its second unit as well which was earlier stopped. As per the Bangladesh government, there were some technical problems noticed in the second unit which has further delayed the power supply from the second unit of the plant. The Bangladesh government has also mentioned that it is trying to increase its payment so that the overdues can be reduced and the power supply can take place smoothly without any kind of hindrances.
The dispatch of power by a power generation company is mainly dependent on procedural requirements which keep changing.
As per the Adani Group, this is a normal situation and the power situation will once again be addressed under contractual agreements. The BPDB and Adani officials had earlier met virtually to resolve the various issues between them and ensure that the Adani Group can continue power supply in Bangladesh. In December 2024, some Adani officials mentioned that BPDB owed around 900 million USD to the company and once the dues are cleared, the Adani Group will once again resume power supply from both the units of the power plant.
The Impact Of The Adani Godda Project:
The Adani Godda project had a significant impact in helping meet Bangladesh’s power demands. Earlier, Bangladesh was constantly suffering from power scarcity. This was further triggered because of various economic and political turmoil which existed in the country. With Adani Group supplying power in Bangladesh, the power issues were resolved. The frequent breakouts were brought to a halt. The industrial and residential activities started to be carried out smoothly. The people of Bangladesh were also able to witness drastic improvements in their living conditions.
The Adani Godda power plant is also equipped with highly advanced forms of technology. This has ensured that the impact on the environment is minimised. The global conglomerate has also used various innovative methods for power generation. This has ensured that power generation can take place seamlessly without the slightest hindrance.
Conclusion:
The Adani Godda project stands as a testament to the Adani Group’s extraordinary business relationships with Bangladesh. Although the project received a setback, both parties are trying their best to ensure that the project operations can be carried out seamlessly. Once the dues are cleared and the disputes are resolved, the Adani Group will once again fully resume power supply from the Godda power plant, thereby ensuring that Bangladesh’s going power demands are well addressed and the business relationship between India and Bangladesh is also maintained.