In a major setback for Bangladesh Gautam Adani-led Adani Power has reduced electricity supply to the neighbouring country by 60 percent due to non-payment of bills amounting to over $800 million (around Rs 6750 crore). Citing data from Bangladesh’s grid operator a Reuters report said Adani Power has further reduced the supply to around 520 MW as it seeks to recover the pending dues. Earlier this month Adani Power which exports power to Dhaka from its dedicated 1600 megawatt (MW) Godda plant in Jharkhand had reduced supply to 700 MW-750 MW from around 1400-1500 MW in early August. The company further reduced the supply to about 520 MW on late Thursday according to Power Grid Bangladesh data and an official with the Bangladesh Power Development Board (BPDB) Reuters reported. Wont be held hostage Muhammad Fauzul Kabir Khan the power and energy adviser in Bangladesh’s caretaker government led by Nobel laureate Mohammad Yunus said the country was paying the dues owed to Adani Power in a gradual manner but asserted that Bangladesh wont let any power producer hold us hostage. ”We are gradually paying the dues and will take alternative measures if anyone stops the supply. We will not let any power producer hold us hostage” Reuters quoted Khan as saying. A BPDB official claimed that Bangladesh continues to get a reduced supply even though it has expedited the payment of dues and a Nov. 7 payment deadline by Adani had been lifted the report said. As per an earlier Reuters report Bangladesh had opened a letter of credit for $170 million for Adani and was accelerating payments. However sources at Adani Power asserted that power supply has been gradually reduced based on demand from Bangladesh as well as keeping payment dues in mind. Adani Power hiked prices A report by Bangladesh-based The Daily Star quoted PDB official as saying that they had earlier cleared a portion of previous dues but since July Adani has been charging more than the previous months. The official said that the PDB has been paying around $18 million weekly while the charge is more than $22 million. This is why the due payments increased again he said adding that they had submitted last weeks payment to Krishi Bank as well but due to a dollar shortage the bank failed to open a letter of credit against the payment. About the additional payment he said when the PDB raised a question on the coal pricing in February last year they signed a supplementary deal that obliged Adani to quote coal prices less than the rates charged by the other coal-fired power plants. After the tenure of the one-year supplementary deal Adani has again started charging as per the PPA the report said. According to the PPA coal prices are calculated based on the average price of two coal indices -- the Indonesian coal index and the Australian Newcastle index -- which increases the prices. (With inputs from Reuters)