Bangladesh’s outstanding debt to Adani Power has escalated to approximately Rs 7500 crore, stemming from electricity supplied under a 2017 agreement.
The 1,600 MW Godda Thermal Power Station in Jharkhand, India, has been the primary source of this electricity, transmitted via a dedicated 400 kV line.Despite partial payments, significant arrears remain, raising concerns about the sustainability of this cross-border energy arrangement.As of early 2025, Bangladesh had paid about $1.2 billion of the approximately $2 billion billed by Adani Power. However, the remaining dues, including late payment surcharges, amount to around $900 million. The Bangladesh Power Development Board (BPDB) has been making monthly payments to address these arrears, but the pace has been insufficient to clear the outstanding balance. In response, Adani Power had previously reduced its supply by 50% in late 2024 due to the mounting debt.
The dispute is further complicated by allegations from Bangladesh’s interim government, led by Nobel laureate Muhammad Yunus, accusing Adani Power of withholding tax benefits granted by New Delhi. This has led to calls for reopening the power purchase agreement, which was signed without a competitive tender process. Additionally, Adani Power is under scrutiny following U.S. bribery charges, adding another layer of complexity to the situation.
Despite these challenges, Adani Power has agreed to restore full supply from the Godda plant, aiming to meet the upcoming summer demand. However, the company has declined Bangladesh’s requests for discounts and tax benefits, insisting on adherence to the existing agreement. The BPDB has expressed its intention to resolve the differences and expedite payments, but the situation remains fluid.
This ongoing dispute highlights the vulnerabilities in cross-border energy agreements, particularly when they lack competitive bidding processes and are subject to political and economic fluctuations. It underscores the need for transparent and equitable frameworks in international energy trade to ensure long-term sustainability and mutual benefit.As the situation develops, stakeholders on both sides will need to navigate these complex issues to maintain a stable and reliable energy supply, which is crucial for the economic well-being of both nations.
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Bangladesh Yet to Pay Rs 7500 Crore to Adani Power