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Adani Power has fully restored its electricity supply to Bangladesh after resuming regular payments for the first time in four months. The supply had been halved in November 2023 due to Bangladesh’s missed payments, with outstanding dues reaching approximately $650 million to $900 million. Rezaul Karim, Chairman of Bangladesh’s Power Development Board (BPDB), confirmed to Bloomberg on March 27 that payments have resumed and power is now being supplied as per Bangladesh’s requirements, although the specific payment amounts and the status of past arrears were not disclosed.
The dispute began when Bangladesh faced a foreign exchange shortage, delaying payments to Adani Power. This led to the shutdown of one of the two units at Adani’s 1,600-megawatt coal-fired plant in Jharkhand, India, which supplies electricity exclusively to Bangladesh. The plant was operating at only 42% capacity following the reduction in supply.
Adani Power had signed a 25-year agreement with Bangladesh in 2017 under former Prime Minister Sheikh Hasina. However, a pricing dispute over power tariffs, which are based on an average of two indices, has complicated the situation. Adani’s power costs about 55% more than the average of other Indian power supplied to Bangladesh.
BPDB has reportedly been paying $85 million monthly to address outstanding dues and has instructed Adani to resume full supply, including from the second unit.
