India introduced new rules for electricity producers who export their power, allowing them to sell in the domestic market. The move could benefit Adani Power Ltd.’s plant, which exports electricity to Bangladesh.
Plants selling their entire power to India’s neighboring countries may be allowed a domestic grid connection in case of a consistent drop in offtake or payment defaults, according to the new rules published on the power ministry’s website.
Adani Power’s Godda plant in the eastern Indian state of Jharkhand sells its entire output to Bangladesh. The 1.6-gigawatt facility had seen arrears pile up but payments are now coming with a lag of 4-5 months, a norm in Bangladesh, the company told analysts on earnings conference calls.
The new rule comes amid political upheaval in Bangladesh that led to former Prime Minister Sheikh Hasina fleeing the strife-torn nation and seeking refuge in India. Even though an interim government has taken charge in Dhaka, risks of political uncertainty persist.
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