Adani Power, a major player in the Indian power sector, has announced that it continues to maintain electricity supply to the Bangladesh Power Development Board (BPDB) despite ongoing disagreements over cost calculations and billing matters.

Continued Operations

The company has confirmed that it is receiving regular payments from BPDB, ensuring the continuity of power supply to Bangladesh. This commitment to maintaining operations underscores the importance of the power supply agreement between Adani Power and BPDB, which plays a crucial role in meeting Bangladesh's energy needs.

Billing Disputes

While the power supply remains uninterrupted, Adani Power has reported disagreements with BPDB regarding cost calculations and billing matters. The nature and extent of these disagreements have not been detailed in the company's statement.

Resolution Process

To address these billing disagreements, Adani Power has stated its intention to utilize established dispute resolution processes. This approach suggests a commitment to resolving the issues through formal channels, potentially including arbitration or other contractually agreed-upon methods.

Implications

The ongoing supply of electricity despite billing disputes highlights the complex nature of international power supply agreements. It also underscores the importance of robust dispute resolution mechanisms in ensuring the continuity of critical infrastructure services across borders.

As the situation develops, stakeholders will be watching closely to see how these disagreements are resolved and what impact they may have on the long-term relationship between Adani Power and the Bangladesh Power Development Board.

Adani Power Limited (APL), India's largest private thermal power producer, has announced strong financial results for the second quarter, demonstrating resilience amid challenging weather conditions that impacted power demand growth.

Key Highlights

• Consolidated power sales volume increased by 7.4% to 23.7 Billion Units
• Total revenue rose to ₹14,308 crore, up 1.74% year-on-year
• EBITDA remained stable at ₹6,001 crore
• Profit After Tax stood at ₹2,906 crore

Operational Performance

Despite slower power demand growth due to prolonged monsoons, APL managed to increase its consolidated power sale volume to 23.7 Billion Units, up from 22.0 Billion Units in the same quarter of the previous year. This 7.4% growth was achieved despite weather-related disruptions and a high base effect from the previous year.

Financial Performance

APL's financial results reflect its operational efficiency and competitive advantages:

The company's revenue grew despite lower merchant tariffs and import coal prices. EBITDA remained stable year-on-year, showcasing APL's ability to maintain profitability in challenging market conditions. The slight decrease in Profit After Tax was primarily due to higher depreciation and deferred tax expenses.

Strategic Developments

APL has made significant strides in expanding its market presence:

1. Secured new Long Term Power Purchase Agreements (PPAs) totaling 4.5 GW:

   • 2,400 MW from Bihar DISCOM
   • 1,600 MW from Madhya Pradesh DISCOM
   • 570 MW from Karnataka DISCOM

2. Acquired 600 MW Vidarbha Industries Power Limited, increasing total capacity to 18,150 MW

3. Completed a 1:5 share split, enhancing stock liquidity

Future Outlook

APL has revised its capacity expansion target to 41,870 MW by FY 2031-32, with 23,720 MW of new projects in the pipeline. The company has already secured land and placed equipment orders for this expansion, positioning itself to meet India's growing power demand efficiently.

Mr. S B Khyalia, CEO of Adani Power Limited, commented, "We are steadily expanding our presence in the market by securing another 4.5 GW of new long-term PPAs under the SHAKTI scheme. Our strong profitability and liquidity position us well to achieve our enhanced capacity expansion goal of 42 GW by 2031-32."

As India's power sector continues to evolve, Adani Power's strategic initiatives and robust financial performance indicate its readiness to play a pivotal role in meeting the nation's energy needs while delivering value to its stakeholders.