The Adani Group has alerted Bangladesh's interim government, led by Nobel laureate Muhammad Yunus, about a significant $500 million backlog in payments related to a major power project. Despite the financial strain, Adani remains dedicated to fulfilling its power supply commitments. The new administration is set to review previous energy agreements to enhance financial efficiency.

Payment Delays and Energy Crisis:

The Adani Group, under billionaire Gautam Adani, has expressed serious concerns regarding the $500 million payment backlog from a major power project. This situation is deemed "unsustainable" by Adani. The payment issues have emerged as a critical problem for Yunus’s interim government, which assumed power last month after the removal of former Prime Minister Sheikh Hasina. Yunus’s administration has criticized the costly infrastructure deals arranged by the previous administration, including a controversial agreement with Adani for coal power supply from its 1,600-megawatt Godda plant in India.

Adani Power, in a statement, affirmed its commitment to providing reliable power to Bangladesh despite the financial difficulties. The company stated, "We are in constant dialogue with the Bangladesh government and have informed them of this unsustainable situation. We are meeting not only our supply commitments but also our obligations to lenders and suppliers despite the rising receivables."

Broader Financial and Energy Challenges:

This payment shortfall contributes to a larger energy crisis in Bangladesh, where total power-related debts have soared to $3.7 billion. Muhammad Fouzul Kabir Khan, Yunus’s chief energy adviser, revealed that Bangladesh owes $492 million of its $800 million debt to Adani. The interim government is seeking financial support from international lenders, including the World Bank, to stabilize the country’s economy.

Despite recent economic growth, Bangladesh struggles with persistent energy shortages, worsened by depleting domestic gas reserves. Critics argue that the previous administration's actions, such as bypassing competitive bidding processes, have led to corruption and inefficiencies in the energy sector.

Adani's Commitment and Future Plans:

Adani, known for its diverse investments including a recently announced $10 billion semiconductor plant, has reiterated its commitment to supplying power to Bangladesh. The Yunus administration is considering re-evaluating existing energy deals to introduce competitive bidding and improve regulatory oversight.

Adani has assured that it has no plans to redirect its power supplies from Bangladesh. The company emphasized, "Currently, our Godda plant is not connected to the Indian grid, so there is no question of seeking alternative markets for supply."

The interim government aims to renegotiate terms for better financial efficiency while maintaining positive relations with both India and China. Future infrastructure deals are expected to be more cost-effective and transparent.

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