As Indian entities like Adani Power continue to build pressure on Bangladesh for clearing the mounting dues, Dhaka says payments are being made in a planned manner. “Payments to all creditors are being made as per a payment plan,” Muhammad Fouzul Kabir Khan, the adviser for the Ministry of Power, Energy and Mineral Resources, Bangladesh said.

On whether Adani contract is being revisited, he told businessline that “an independent committee has been constituted by the High Court which has no representation from the government. The Court has picked up 11 contracts which includes that of Adani Power as it felt some favours have been extended.”

According to sources in Adani, it has heard about the investigation but has not got any official communication. Meanwhile, a few days back Dhaka has given a $173 Million Letter of Credit to Adani Power. As a pressure tactic Adani Power had set a deadline of November 7 to Bangladesh Power Development Board (BPDB) to clear its outstanding and provide the LC in line with the power purchase agreement.

Another source in the know said, Dhaka wants to clear payments on priority  but initially it would be paying around $ 160 million as there is strain its foriegn reserve.

At present, unresolved issues that have been found in these contracts are being discussed. Most of these project contracts were signed under the Quick Enhancement Act of Bangladesh. The Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act 2010 was to make special provisions for facilitating effective and urgent measures to enhance the generation, transmission, transportation and marketing of electricity to ensure uninterrupted supply of electricity keeping pace with the demand. Once the Committee submits the report a clarity will come on whether some of these contracts will be renegotiated, another source said.

Besides, Adani Power the other Indian power exporters to Bangladesh that are feeling the financial strain because of mounting delayed payments from Dhaka include SEIL Energy India and PTC.

Both Indian and Bangladesh sides say that there is a constant communication between BPDB and them. On whether supplies can be fully cut as threatened by some of the players, an official in the know said, it may be difficult as there are agreements that have been signed.

For Adani Power the outstanding was approximately $850 million. SEIL Energy India has received $ 30 million, but still has an outstanding $ 180 million.

Bangladesh gets power from Adani’s dedicated 1,600 MW power plant in Jharkand with two units of 800 MW each. Currently, power supply is from a single unit ranging between 500-600 MW. SEIL Energy supplies Bangladesh from its plant in Andhra Pradesh -- 250 MW of power directly and 200 MW through PTC under the long-term power purchase agreements awarded through competitive bidding.

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