No power supply if dues not settled by Nov 7: Adani to Bangladesh

India's Adani Power has set a deadline of November 7 to switch off the flow of electricity to Bangladesh if the outstanding debt of $850 million is not paid to the company, Times of India reports. 

Adani had set a deadline of October 31 for the Bangladesh Power Development Board to clear the dues and provide a letter of credit LC) of $170 million to ensure security of payment. 

However, while BPDB did seek to issue an LC against the outstanding amount through Krishi Bank, the move was not in line with the terms of the power purchase agreement, Times of India said citing a source. A shortage of dollars was cited as one of those reasons. 

The situation prompted Adani Power Jharkhand to reduce supply to Bangladesh. 

Adani did not comment on the matter but senior executives had earlier told the Times of India that they were hopeful for a resolution.