Five Indian power companies are grappling with over $1 billion in unpaid dues from Bangladesh. Key player Adani Power is owed around $800 million. Despite continued supply, companies have stressed on the unsustainable nature of this arrangement.
The executives mentioned above said that the companies have maintained their power supply to Bangladesh despite the outstanding dues, showcasing the strong friendship between the two nations. However, they cautioned that this arrangement cannot persist indefinitely, as the companies are accountable to their stakeholders.
“But it cannot continue forever as they too are answerable to their stakeholders,” one of the persons said.
PTC India’s outstanding dues from Bangladesh amounted to approximately $84.5 million as of March end. The company has received $46 million until August 25, according to their emailed response to ET’s query.
Currently, PTC India is owed $79 million by the neighboring country. Since 2013, PTC has been supplying 250 MW of power to the Bangladesh Power Development Board from West Bengal State Electricity Distribution Co.
Power Grid Corporation of India is owed $20 million by Bangladesh. NTPC, SEIL Energy, and Power Grid did not respond to ET’s queries regarding the matter. A government official said, “Some companies have had issues related to payment, with some of it related to coal purchase as well.”
One executive from a power company mentioned earlier emphasized the urgency of finding a resolution, warning that failure to do so would make it challenging for them to sustain the power supply. The executive highlighted the need for upfront payments to lenders, coal suppliers, spare parts providers, and other essential services related to plant operations.
The Godda plant, which became fully operational in July 2023, relies on imported coal for power generation. During its commissioning, Adani Power had stated that the electricity supplied from the plant would positively impact Bangladesh by replacing the expensive power generated from liquid fuel. According to one of the sources, Adani has continued to provide power as per the schedule set by the Bangladesh Power Development Board.
