Bangladesh settles $384 million payment to Adani Power amid financial struggles

Time of India

a day ago

Bangladesh paid $384 million to
Adani Power
in June, significantly reducing its outstanding dues under a power supply agreement with the Indian firm, according to sources.
In June (till June 27), Bangladesh has paid $384 million of the committed $437 million to be paid during the month, two sources aware of the matter said.
This would clear Bangladesh's "admitted" claims till March 31.
With this, Adani's "claimed" dues, while still substantial, will come down to around $500 million (assuming Bangladesh meets its month-end commitment), they said.
Bangladesh has struggled to meet its payment obligations under the 2017 deal, as rising import costs following the Russia-Ukraine conflict in 2022 and domestic political turmoil - which led to the ouster of prime minister Sheikh Hasina - strained the country's finances.
As a result, Adani had halved supply last year and full supplies were resumed in March 2025 after the country's monthly payments started covering some of the dues.
With the latest payments, Bangladesh has paid nearly $1.5 billion of the roughly $2 billion total billed amount.
Adani has reportedly agreed to waive late payment surcharge (LPS) for January-June period, amounting to about $20 million, if Bangladesh keeps its payment commitment.
Sources said both parties are engaged in discussion to resolve some issues related to coal cost and plant capacity calculations. These are the key reasons behind the difference between "claimed" and "admitted" dues.
When contacted, an Adani Power spokesperson confirmed the payments but didn't share details on "claimed" and "agreed" dues stating these discussions are private.
The 2017 power supply deal between Adani Power and Bangladesh had come in for scrutiny after the ouster of the Sheikh Hasina-led government last year. Interim government, led by Nobel Peace prize laureate Muhammad Yunus, called for the formation of a high-level committee, comprising energy and legal experts, to re-examine the power purchase agreement (PPA).
Under the 2017 deal, Adani Power's Godda power plant in Jharkhand was to supply 100 per cent of the electricity generated from burning coal, to Bangladesh for a period of 25 years.
After payment defaults, Adani had cut supplies by half in November 2024. It restored full electricity supply, which is around 1,600 MW, in March after the country reduced liabilities.
Bangladesh stepped up repayments from July last year, clearing monthly dues. This came after the country suffered from increased power shortages in rural areas.
Bangladesh has been struggling to generate sufficient dollar revenues to cover the cost of essential imports such as electricity, coal, and oil. Its foreign currency reserves declined amid months of student-led protests and political unrest, which culminated in the ousting of the Sheikh Hasina government in August 2024.
The interim government that succeeded her sought an additional $3 billion loan from the International Monetary Fund (IMF) on top of the existing $4.7 billion bailout package.
Adani's power deal with Bangladesh was one of the many under Sheikh Hasina, which the current interim government has called opaque. Besides Adani Power, other Indian state-owned firms also sell power to Bangladesh, including NTPC and PTC India Ltd.