Bangladesh Cuts Power Purchases from Adani India Amid Payment Dispute
POWER & RENEWABLE ENERGY

Bangladesh Cuts Power Purchases from Adani India Amid Payment Dispute

Bangladesh reduced its power purchase from India's Adani Power by half, citing lower winter demand, according to government officials who spoke to Reuters. This decision came amid on-going disputes over outstanding dues amounting to hundreds of millions of dollars.

Adani Power, whose founder has faced bribery allegations from US authorities—charges he has denied—had initially cut the supply to Bangladesh on October 31 due to delays in payment as Bangladesh struggled with a foreign exchange shortage.

Officials stated that Bangladesh later instructed Adani to continue supplying only half of the power for the time being, although it would continue to pay off its old dues.

Md Rezaul Karim, chairperson of the Bangladesh Power Development Board (BPDB), expressed that they were shocked and angered when the supply was reduced. He mentioned that with winter demand decreasing, they had informed Adani that it was unnecessary to operate both units of the plant.

Adani Power has been supplying electricity under a 25-year contract signed in 2017, during the tenure of ousted Prime Minister Sheikh Hasina, from a $2 billion power plant located in Jharkhand, India, which has two units, each with a capacity of around 800 megawatts.

A document reviewed by Reuters revealed that the plant had operated at only 41.82 per cent capacity in November, the lowest for the year, with one unit remaining shut since November 1.

Two sources from the BPDB noted that Bangladesh had purchased approximately 1,000 MW per month from Adani last winter. They also mentioned that Adani had inquired about when Bangladesh would resume normal purchases but had not received a clear response.

An Adani Power spokesperson confirmed that the company was continuing to supply electricity to Bangladesh, although the growing dues were becoming a significant concern, making plant operations unsustainable. The spokesperson further added that the company was in regular talks with senior BPDB and government officials, who had assured them that the outstanding dues would be settled soon. The spokesperson expressed confidence that Bangladesh would fulfill its commitments, just as Adani had met its contractual obligations.

Karim mentioned that Bangladesh owed Adani approximately $650 million and had made payments of around $85 million in November and $97 million in October.

Bangladesh reduced its power purchase from India's Adani Power by half, citing lower winter demand, according to government officials who spoke to Reuters. This decision came amid on-going disputes over outstanding dues amounting to hundreds of millions of dollars. Adani Power, whose founder has faced bribery allegations from US authorities—charges he has denied—had initially cut the supply to Bangladesh on October 31 due to delays in payment as Bangladesh struggled with a foreign exchange shortage. Officials stated that Bangladesh later instructed Adani to continue supplying only half of the power for the time being, although it would continue to pay off its old dues. Md Rezaul Karim, chairperson of the Bangladesh Power Development Board (BPDB), expressed that they were shocked and angered when the supply was reduced. He mentioned that with winter demand decreasing, they had informed Adani that it was unnecessary to operate both units of the plant. Adani Power has been supplying electricity under a 25-year contract signed in 2017, during the tenure of ousted Prime Minister Sheikh Hasina, from a $2 billion power plant located in Jharkhand, India, which has two units, each with a capacity of around 800 megawatts. A document reviewed by Reuters revealed that the plant had operated at only 41.82 per cent capacity in November, the lowest for the year, with one unit remaining shut since November 1. Two sources from the BPDB noted that Bangladesh had purchased approximately 1,000 MW per month from Adani last winter. They also mentioned that Adani had inquired about when Bangladesh would resume normal purchases but had not received a clear response. An Adani Power spokesperson confirmed that the company was continuing to supply electricity to Bangladesh, although the growing dues were becoming a significant concern, making plant operations unsustainable. The spokesperson further added that the company was in regular talks with senior BPDB and government officials, who had assured them that the outstanding dues would be settled soon. The spokesperson expressed confidence that Bangladesh would fulfill its commitments, just as Adani had met its contractual obligations. Karim mentioned that Bangladesh owed Adani approximately $650 million and had made payments of around $85 million in November and $97 million in October.

Next Story
Resources

Madhya Pradesh Champions Inclusive Tourism at Heritage Sites

On the occasion of World Heritage Day, Madhya Pradesh is taking a significant step toward inclusive tourism by making its historical sites accessible to all — especially persons with disabilities. The state is rolling out its ‘Accessibility Infrastructure and Development’ project at Maheshwar, Mandu, Dhar, and Orchha, aiming to create a more welcoming experience at these iconic cultural destinations.The initiative, under the leadership of Chief Minister Dr Mohan Yadav and Tourism Minister Shri Dharmendra Bhav Singh Lodhi, includes infrastructure upgrades such as ramps, Braille signage, w..

Next Story
Resources

Runwal Realty Onboards Sonam Kapoor as Brand Ambassador

Real estate major Runwal has unveiled a refreshed identity as Runwal Realty, signalling a renewed commitment to crafting spaces that stand the test of time. With this refresh, the brand unveils its new philosophy: “Building for Generations to Come” and welcomes Bollywood star and global fashion icon Sonam Kapoor as its brand ambassador. This evolved identity reflects Runwal Realty’s commitment to creating not just homes, but heirlooms—crafted through visionary design, meticulous planning, global design expertise and an unwavering focus on quality. With the customer at its core, each de..

Next Story
Infrastructure Urban

Emerging Trends in Infrastructure and Transport 2025: KPMG

KPMG’s latest report, The Great Reset: Emerging Trends in Infrastructure and Transport 2025 edition, sheds light on the profound changes transforming the global infrastructure landscape. As industries adapt to the challenges posed by climate change, economic pressures, and technological advancements, the report identifies key trends and provides actionable insights for leaders in infrastructure and transport sectors. “In today’s interconnected world, the lack of standardized supply chain practices is not just an operational challenge—it’s an environmental and economic one. We’..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?