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Adani Warns Bangladesh of Unsustainable $500mn Power Debt

- India's Adani Group has alerted Bangladesh's new government about a $500mn overdue payment crisis from a power project. - The interim government, led by Nobel laureate Muhammad Yunus, blames costly deals under former PM Sheikh Hasina for financial woes. - Adani continues to supply power despite rising dues, urging Bangladesh to stabilize finances with help from lenders like the World Bank. - Bangladesh faces $3.7bn in total power liabilities, with $492mn owed to Adani alone. - Yunus's administration plans to reintroduce competitive bidding and review past energy deals to ensure cost-effectiveness. Source: [Financial Times](https://www.ft.com/content/176b6884-8e69-47ee-990c-c78a26793d7c)

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by AlarmedSocialist

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Political crisis in Bangladesh and its implication on India

The recent political instability in Bangladesh has significant implications for India, given the close geographical, economic, and cultural ties between the two countries. Here are some key points to consider: 1. Economic Impact It can disrupt trade and economic relations as Bangladesh is our largest trading partner in the Indian subcontinent with trade worth of $14.2 billion with balance of trade in India's favor. Any disruption can affect businesses, supply chains, and economic stability in the region. 2. Security Concerns It may lead to the rise of radical elements and cross-border tensions. This can impact India’s border security and necessitate increased vigilance and resources to manage potential threats over 4000 km of land border. 3. Refugee Influx Political turmoil often leads to displacement of people. India may face an influx of refugees from Bangladesh, which can strain resources and create humanitarian challenges and also changes the demographic pattern of the region. 4. Geopolitical Dynamics Bangladesh’s strategic position and its ties with China add complexity to the situation. As it may add a pearl to the China's String of Peral policy. 5. Diplomatic Relations India has historically had strong ties with Sheikh Hasina’s government. The new government may have different priorities and policies, requiring India to adapt its diplomatic strategies. 6. Regional Stability Overall, the stability of Bangladesh is crucial for the broader South Asian region. Instability can have a ripple effect, impacting neighboring countries and regional cooperation initiatives. India will need to carefully monitor the situation and engage in diplomatic efforts to support stability and maintain strong bilateral relations with Bangladesh.