Bangladesh: Analyzing Hasina era Adani Power Deal

[BananaRepublic]

Brother Pakistan is an official enemy of India who has claims on territorial integrity of India..... Bangladesh 1 or 2 bitter experiences here and there is not our official enemy and officially has never claimed any Indian territory......

My point is we have now globally second most populated enemy on east and 2nd most populated of South Asia on west with both having nukes..... we don't need 3rd most populated (south Asia) enemy on east..... 800 million amount is not worth it especially after we have given a safe custody to Hasina..... sometimes I feel such policies by us makes easy things for China to encircle us in our own backyard.....

And from the BD side - you cannot grow by poking the elephant!

Both sides need to stop poking each other.

Both sides need to reign in their terrorists and haters!

Lot of Bangladeshis, for some weird reason, expect the Indians to treat them better than the gulfies! Whilst simultaneously labelling them as religious enemies lol

 

[BananaRepublic]

Are you even aware of how much Radicalisation and Anti India propoganda is going on in Bangladesh

And you are dreaming of Friendship and trade

We are done with them

Not as much as the radicalisation and hate that has been coming from India since Modi!

You have prominent ministers and celebs calling for blood.

No such parallels exists in BD even with the juvenile delinquents in charge.

 

[hussain0216]

Never should have gone down this path and trusted India in the first place

 

[LeonBlack08]

Do you have any idea of whether the contract even allows this?

Think it through - BD is paying for current electricity and paying 5% every month of the debt. That would be judged reasonable under any circumstance.

Also why did Adani say nothing when Hasina was in charge as he supplied power for a year with zero payment?

The capacity charge bit is correct. The contract has provision for it. This was another factor Hasina was criticized for agreeing to given her regime's track record.

For context - This capacity charge is how loads of money were made by BAL politicians and affiliated businessmen in their "Quick rental" power supply business. Hasina admin intentionally overestimated power needs for the country to justify getting into contracts with these businesses and then they simply charged capacity charges for years without supplying a single MW of electricity. Look up the case of Summit power, owned by Col Faruk who was a BaL mp. He laundered billions of dollars to Singapore over the years.

 

[c14-Isotope]

Do you have any idea of whether the contract even allows this?

Think it through - BD is paying for current electricity and paying 5% every month of the debt. That would be judged reasonable under any circumstance.

Also why did Adani say nothing when Hasina was in charge as he supplied power for a year with zero payment?

All energy contracts have capacity charges.
Where's the data that BD is even paying for it's electricity usage?

"Two PDB officials informed Prothom Alo that the board has deposited Tk 10 billion in a bank to settle outstanding bills for Indian power plants, including Adani.

However, banks are struggling to process regular payments due to a dollar shortage."

Why Adani did not squeeze the government when SHW was in power is immaterial.
Probably the incumbents should contact SHW and learn a few trade secrets from her

 

[Pingle]

Are you even aware of how much Radicalisation and Anti India propoganda is going on in Bangladesh

And you are dreaming of Friendship and trade

We are done with them

I am not dreaming I just want to see atleast a peaceful front at BoB.... on anti India propaganda it is not going to last long its temporary and will settle down in coming time once the internal situation improves..... for 170mn people neighbor we need some time.....

Remember you can control your kawasaki ninja even at the speed of 200 kms per hour...... I can say lucky countries like New Zealand or Netherlands can be called as such super bikes..... but 170 million Bangladesh is a 16 wheeler fully loaded truck which cannot be immediately controlled...... same is the case with India.....

 

[UKBengali]

All energy contracts have capacity charges.
Where's the data that BD is even paying for it's electricity usage?

"Two PDB officials informed Prothom Alo that the board has deposited Tk 10 billion in a bank to settle outstanding bills for Indian power plants, including Adani.

However, banks are struggling to process regular payments due to a dollar shortage."

Why Adani did not squeeze the government when SHW was in power is immaterial.
Probably the incumbents should contact SHW and learn a few trade secrets from her

I am not disputing that but the contract may not allow Adani unilaterally cutting off the power and then still charging the "capacity charge". Whether there is overdue payment may not matter.

We do not know what is in the contract and so no point speculating.

PS - If you read the whole of the article you would see that BD paid 100 million US dollars last month and so there was surprise at the Adani decision.


@LeonBlack08

 

[Guynextdoor]

Never should have gone down this path and trusted India in the first place

Yes, they should have lived without power like in the dark ages.

 

[c14-Isotope]

I am not disputing that but the contract may not allow Adani unilaterally cutting off the power and then still charging the "capacity charge". Whether there is overdue payment may not matter.

We do not know what is in the contract and so no point speculating.

PS - If you read the whole of the article you would see that BD paid 100 million US dollars last month and so there was surprise at the Adani decision.


@LeonBlack08

Sorry, that's not how it works. Failure to pay dues is a breach of contract.

You cannot force the other party to honour their end of contract when you don't honour your own share of it.

Capacity charges, you will have to pay. Even after you choose arbitration, no court anywhere will let you loose on the capacity charges.

Anyway, BD will pay some by 7th, and then there will be a lull till next month.

 

[vasanthm]

Everyone making it look like the deal was so lopsided that it favours Adani immensely but by the looks of it Adani seems to want to end the deal..

 

[c14-Isotope]

Everyone making it look like the deal was so lopsided that it favours Adani immensely but by the looks of it Adani seems to want to end the deal..

Ending the deal at this point will be a BIG LOSS to BD.

 

[Guynextdoor]

Ultimately Adani is supplying power cheaper than the other sources BD is currently getting.. looks like lot of controversy for nothing

Could be a tag team if you think about it.

1) Indian industry- especially Coimbatore is aggressively trying to capture the garment business from BD
2) BD doesn't pay adani so adani gets excuse to cut off power suplly to BD industry
3) Supply disruption forces clients to shift to stable suppliers in Tamil Nadu

4) Adani runs PR campaigns aided by @UKBengali saying things like 'oh how great it is that BD doesn't power now we will use nuclear power. MOD EDIT: DO NOT TROLL.

Meanwhile Indian industry walks away with large chunks of BD garment business.

Looks pretty hand in glove game to me.

 

[vasanthm]

Could be a tag team if you think about it.

1) Indian industry- especially Coimbatore is aggressively trying to capture the garment business from BD
2) BD doesn't pay adani so adani gets excuse to cut off power suplly to BD industry
3) Supply disruption forces clients to shift to stable suppliers in Tamil Nadu

4) Adani runs PR campaigns aided by @UKBengali saying things like 'oh how great it is that BD doesn't power now we will use nuclear power to make lungies etc.'

Meanwhile Indian industry walks away with large chunks of BD garment business.

Looks pretty hand in glove game to me.

Adani is a corporate with their own self interest, they will not care about other industries they are currently not part of just because they are Indian...


But it looks inevitable that BD will loose a chunk of garment business to Tiruppur in TN.. I'm already hearing that even small companies are getting more enquiries and orders..

 

[UKBengali]

Could be a tag team if you think about it.

1) Indian industry- especially Coimbatore is aggressively trying to capture the garment business from BD
2) BD doesn't pay adani so adani gets excuse to cut off power suplly to BD industry
3) Supply disruption forces clients to shift to stable suppliers in Tamil Nadu

4) Adani runs PR campaigns aided by @UKBengali saying things like 'oh how great it is that BD doesn't power now we will use nuclear power to make lungies etc.'

Meanwhile Indian industry walks away with large chunks of BD garment business.

Looks pretty hand in glove game to me.

It may help if you knew that a lot of BD garment factories have backup diesel generators.

BD garment industry grew when the supply to demand was much worse than now and will do so in the future.

Expensive but they can keep going for a few weeks till the brand new Japanese 1.2GB Matarbari coal fired power plant comes back online at the end of this month. That should suffice to plug the gap by the power loss from Adani.

Roopur nuclear next year will allow some of the more inefficient thermal oil power plants to close.

 

[vasanthm]

It may help if you knew that a lot of BD garment factories have backup diesel generators.

BD garment industry grew when the supply to demand was much worse than now and will do so in the future.

Expensive but they can keep going for a few weeks till the brand new Japanese 1.2GB Matarbari coal fired power plant comes back online at the end of this month. That should suffice to plug the gap by the power loss from Adani.

What's the cost of power from this Japanese plant? Just curious to see if Adani is more expensive?