As per the latest news, the Adani Group was compelled to reduce the power supply to Bangladesh by half mainly because of the outstanding bill. Because of this recent power situation, there has been a shortfall of over 1600 MW of power as the 1,496 MW Adani Godda power plant is now producing 700 MW from a single unit. This has brought about energy scarcity in Bangladesh. However, once the political situation in Bangladesh becomes better, the global conglomerate will once again be able to resume power supply to Bangladesh.
The Current Power Situation In Bangladesh
Adani Power Jharkhand Limited, a wholly-owned subsidiary of the Adani Group, was responsible for supplying power from the power plant in Jharkhand to Bangladesh. However, because of the outstanding bills of 846 million USD, the power plant has stopped half of its power supply to Bangladesh. However, once the power situation normalises, the conglomerate will once again start supplying power to the Bangladesh grid from the Adani Godda power plant smoothly and consistently. That way, Bangladesh’s extreme power scarcity will be mitigated. The people will also be able to start leading their lives in a much better manner.
The Adani Group’s Power Purchase Agreement With Bangladesh
Adani Power Jharkhand Limited which is a wholly-owned subsidiary of Adani Power Limited, a part of the diversified Adani Group, has been responsible for operating the Adani Godda power plant, one of Adani Group’s most crucial international power projects. This project achieved the commercial operations date of its second unit on 26th June 2023. The reliability run tests including the commercial operations test of the second unit were completed on 25th June in the presence of Power Grid Corporation of Bangladesh and BPDP. Earlier on 6th April 2023, the first unit of the power plant also achieved completion.
The Adani Godda power plant is an ultra-supercritical thermal power plant having a total capacity of 1,600 MW unit, each unit having a capacity of 800 MW. The power generated from the Godda power plant was being transmitted to the Bangladesh grid. As a part of the contract, the Adani Group was supposed to supply 1,496 MW of power for 25 years to the Bangladesh national grid from the Godda power plant via a 400 kV dedication transmission system. This project had a positive impact on Bangladesh’s power situation. It helped replace costly power generated from liquid fuel.
The Change In Scenario
The transmission of power allowed Bangladesh to reduce its average power purchase cost. However, considering Bangladesh’s recent political scenario, there has been a lot of controversy regarding the project. The Bangladesh government has no longer been in a position to pay for the electricity which is being supplied. However, even after increasing dues, the Adani Group continued to supply power to the Bangladesh grid so that the country’s power demands could be met.
The present situation is such that the country is no longer in a position to supply power as the debt has reached 846 million USD so the conglomerate was forced to cut down on its power supply. However, once the dues are paid, the Adani Group will once again resume power supplies so that there can once again be an improvement in the power situation. The international relationships between India and Bangladesh would also strengthen. The various industrial and residential activities can also be carried out in Bangladesh smoothly and effectively.
For a considerable amount of time now, the Adani Group has been pressing the interim government of Bangladesh to pay the dues since they took charge of the country after the ouster of former Prime Minister Sheikh Hasina. An interim government led by the Nobel Laureate Professor Muhammad Yusuf was formed in Bangladesh amidst the political crisis. The Adani Group also wrote to the chief advisor Yunuf to consider the various aspects of the project so that the deal can be applied and the power supply can also continue in Bangladesh for a prolonged duration of time.
Conclusion
Because of the current situation of turmoil in Bangladesh, the Adani Group has been compelled to cut down on power supply in Bangladesh. However, the global conglomerate aims to resume power supply soon enough so that the present situation can be reversed and peace can once again prevail in Bangladesh.