Bangladesh has reduced its power purchases from India’s Adani Power, citing lower winter demand and ongoing disputes over unpaid dues amounting to hundreds of millions of dollars. The supply cut, which occurred on October 31, was initially made by Adani due to delays in payments, amid Bangladesh’s foreign exchange shortage. Following this, Bangladesh informed Adani to continue supplying only half the usual amount, though it committed to paying off the previous debts.
Adani Power had been supplying electricity to Bangladesh under a 25-year agreement signed in 2017, from a $2 billion plant in India’s Jharkhand. In November, the plant operated at just 41.82% capacity, with one of its two units shut down. Bangladesh had purchased around 1,000 MW per month during the previous winter.
The Bangladesh Power Development Board (BPDB) confirmed it owed Adani approximately $650 million, having paid $85 million in November and $97 million in October. However, the total debt is now estimated at around $900 million. The high costs of Adani’s electricity, the most expensive of all Indian suppliers to Bangladesh, have contributed to a significant power subsidy bill for the Bangladeshi government, which is pushing for lower prices in the deal.
Despite these issues, Adani Power remains in talks with Bangladesh, confident that the country will fulfill its payment obligations, while seeking to resolve the financial challenges that are impacting its operations.
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PRESS UPDATE