Clear $845m by June to avoid late charges
India's Adani power has asked Bangladesh Power Development Board to pay $845 million in arears by the end of June or face charges for late payment.
Adani Power (Jharkhand) Ltd (APJL) in a letter yesterday said it would waive surcharges if the PDB paid the invoices on time.
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The company supplies power to the PDB under a Power Purchase Agreement. The $845 million it demands is for outstanding bills since April 2024.
APJL will waive Late Payment Surcharge applicable for the period of January to June 2025 if PDB pays the monthly invoices during this tenure within due date, the letter said.
The decision has been made as the company faces a severe cash crunch and to enable the PDB to clear the outstanding payments, adds the letter signed by MR Krisha Rao, president of APJL joint coordination committee.
"We request the PDB to consider the aforementioned proposal and clear the outstanding dues as per above modalities as the same is in the interest of both PDB and APJL."
Earlier this month, Adani asked the interim government for a timeline by which the dues would be paid.
The PDB signed a 25-year power purchase agreement with Adani power in November 2017.
Since August, Adani repeatedly requested the interim government to immediately clear the dues.
Over the payment issues, Adani shut one of its two coal-fired units in November last year. The 1,496 megawatts (MW) plant has since been supplying 400MW-700MW from a single unit.
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