Written by The Banking Post
Indian energy giant Adani Power has urged the Bangladesh government to clear nearly $500 million in outstanding dues, warning that continued delays could disrupt power supply from its Godda plant.
In a recent letter to the finance secretary, Adani Power Managing Director Anil Sardana expressed concern over the unresolved payments, including late payment surcharges agreed upon by the Bangladesh Power Development Board (BPDB).
He noted that BPDB had assured full payment by September 30 during a meeting on June 23. However, no payment schedule has been communicated so far.
While Bangladesh Krishi Bank issued a $62.44 million payment advice on September 14, the bulk of the dues—around $500 million—remains unpaid. “This unpredictability in cash flow is affecting the Godda power plant’s operations,” Sardana said, adding that regular and timely payments were critical for financial and operational stability.
Despite the current situation, Adani acknowledged that BPDB released significant payments between June and August, which helped reduce the backlog.
A BPDB official confirmed that $437 million was paid in June to settle arrears up to March 31. He added that BPDB estimates total dues at around $700 million, lower than Adani’s earlier claim of $900 million, which included interest.
Under a long-term power purchase agreement signed in 2015, Adani has been supplying 1,496MW of electricity to BPDB from its Godda power plant in India since April 2023. The plant plays a key role in meeting power demand in northern Bangladesh.
Currently, Adani’s monthly bills for electricity supplied to Bangladesh range between $80 million and $100 million. BPDB, already managing regular payments on top of the accumulated dues, is struggling with liquidity.
“We are trying to make payments to Adani regularly,” said a BPDB official, without offering a concrete timeline for full settlement.
The central bank has authorized Bangladesh Krishi Bank to process payments to Adani, but delays persist, raising questions about BPDB’s financial commitments under the agreement.
