Bangladesh's Power Play: How Adani Power Restored Energy Ties
Bangladesh recently made its largest payment of USD 437 million to Adani Power, resolving outstanding dues. This move reinstates Adani's full power supply to Bangladesh, improving its credit ratings. This comes after financial struggles due to geopolitical tensions and domestic unrest. The restored partnership strengthens Bangladesh's energy framework.
- Country:
- India
In a significant economic move, Bangladesh has cleared dues amounting to USD 437 million with Adani Power, ensuring the resumption of an essential power supply agreement. This payment marks the largest single installment made by the country to the Indian conglomerate, addressing outstanding concerns and reinforcing its energy framework.
The financial transaction signifies a pivotal turnaround following Bangladesh's struggles in meeting payment obligations due to global and domestic disruptions. The successful clearance of these dues has allowed Adani Power to resume full electricity supply, reaching up to 1,600 MW from its strategically located Godda plant in Jharkhand.
As a result, financial institutions express confidence in enhancing Adani Power's credit rating. This development not only highlights economic cooperation between Bangladesh and India but also sets a precedent for future energy-related agreements, underscoring a stable power supply benefitting Bangladesh's growing energy needs.
(With inputs from agencies.)
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- Bangladesh
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- Godda
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- IMF
- Sheikh Hasina
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