There has been renewed concern over the power situation in Bangladesh after India's Adani Power cut power supply over arrears issue.
Advertisement
Recently, an Indian media reported that Adani Power will stop supplying electricity to Bangladesh from November 7 if the settlement of the outstanding debt of about 85 million dollars is not resolved.
It is said that 1,400 to 1,500 megawatts of electricity was coming to Bangladesh every day from two units of the coal-based power plant in Godda, Jharkhand state. India's largest private power company announced on Thursday that it has stopped power generation of a unit due to non-payment of dues.
Adani in India was contacted by the BBC but did not receive any comment on the shutdown.
However, later in a small message from the company in charge of public relations in Bangladesh, they did not make any demand to pay 80 to 85 million dollars within seven days.
Fawzul Kabir Khan, energy adviser to the interim government, told BBC Bangla that the dues will be paid according to the government's payment plan, not based on who said what.
He also commented that the agreement with Adani was not in favor of Bangladesh from the beginning.
Could Adani's electricity be shut down completely?
Neither the government's energy adviser nor other experts in the energy sector believe there is any chance of a complete shutdown of power supply to Adani Power.
A well-known expert in Bangladesh's energy sector said on condition of anonymity that it is a ploy to apply pressure to collect dues. Bangladesh will make a partial payment and is guaranteed to get the balance in the future, so Adani Power is not supposed to stop power supply.
Two senior officials of the government said that the partial payment process is already underway.
Fawzul Kabir Khan said that Bangladesh is continuing its efforts to pay its dues at its own pace. It is known that the payment amount has been gradually increased.
Bangladesh paid three and a half million dollars in July, the last month of the Awami League government. The new government increased the amount of money by 68 million dollars in September and 97 million dollars in October, said the energy advisor.
Introduction of India
Just a week after Sheikh Hasina's ouster, India's Ministry of Power issued a circular. On August 12, a notification signed by an official of the rank of under secretary of the ministry informed that amendments are being made to India's policy for exporting electricity to neighboring countries (cross border). As a result, the electricity produced for export can be added to India's national grid and sold within the country!
India's opposition parties complain that this amendment has been brought to give special benefits to Adani Power. Of course, after the news of the November 7 deadline came out, the Ministry of Foreign Affairs of the Government of India informed that the country has no role in the issue between Adani and Bangladesh.
However, energy expert Professor Badrul Imam thinks that there is a relationship between the current situation and political events.
Professor Imam says, India's interests are involved here, despite the official denial. They are supposed to have a bias towards big companies in their country even if they are not directly involved.
In an interview, the energy adviser said, Bangladesh is ready to pay the dues. They are thinking of alternative arrangements. But I will not let Bangladesh become a hostage in the hands of any electricity producing company; I will not allow blackmail.
There is still a lot of opposition and controversy in Bangladesh regarding the power purchase agreement with one of the largest business groups in India. Opponents allege that the Indian company has taken a special opportunity to increase profits through this 25-year contract. It is being demanded to amend or even cancel this electricity agreement as against the interest of the country.
How will Bangladesh cope?
According to the Electricity Department, the maximum possible demand during summer this year was estimated at 17,500 MW. Bangladesh produced a maximum of 16,477 megawatts on April 30. Although the production capacity of the country is almost doubled.
The updated statistics of the electricity department on October 14 says that the power generation capacity including captive and renewable energy is 31 thousand 145 megawatts. Sheikh Hasina government has built power plants one after another in the country in the last fifteen years.
It is alleged that these power plants have been constructed unplanned without ensuring fuel supply. In many cases demand is not taken into consideration.
The current government's energy advisor says that there will be no problem even if Adani does not get electricity. Due to lack of coal, our centers are not able to produce.
Adani Power was supplying 10 percent of the electricity used in Bangladesh. In terms of MW which is about one and a half thousand. Reuters quoted a senior official of the power department as saying that the supply was cut in half due to the shutdown of one unit.
Fawzul Kabir Khan commented that less amount of electricity is not a problem and said that there is alternative system, there is nothing to worry about it.
He thinks that the talk of crisis is a hype created by the media. This is not a big problem.
Energy expert Professor Badrul Imam says, but there is no other source in Bangladesh. As a result, there is no immediate alternative.
However, the demand for electricity is generally less in winter. Experts believe that there is some reason for relief.