Bangladesh issued a $173 million Letter of Credit (LC) to Adani Power for continued electricity supply amidst mounting dues and looming power cuts.
Adani Power demanded an extra $15-20 million from BPDB to restart an 800 MW unit after cutting supply by half due to unpaid dues exceeding $843 million.
Adani Power and BPDB's 25-year power purchase agreement (PPA), signed in 2015, covers 10% of Bangladesh's power needs with a capacity of 1,600 MW.
Bangladesh's IMF loan partly eased the $400 million in dues to Adani between July and October, helping maintain partial payments to the power producer.
Bangladesh's political turmoil and currency reserve issues have impacted timely payments to Adani Power, with monthly dues of $95-97 million pending.
Adani chairman Gautam Adani sought government intervention to release $850 million receivables, warning of power suspension without timely payments.