Adani threatens power halt over unpaid $850m

Staff Reporter :

Adani Power has notified Bangladesh of a potential full suspension of electricity supply by 7 November if outstanding payments-estimated at around $850 million-are not settled, according to The Times of India (TOI).

This notice comes after Bangladesh missed a payment deadline on 31 October.

The Bangladesh Power Development Board (BPDB) had attempted to secure a $170 million letter of credit through Krishi Bank; however, this arrangement reportedly did not meet the terms stipulated in their power purchase agreement, sources told TOI.

In response to the payment delays, Adani Power Jharkhand began reducing its electricity supply to Bangladesh on 31 October.

Data from Power Grid Bangladesh shows that on Friday, Adani’s Godda plant delivered only 724 megawatts (MW) out of its 1,496 MW capacity. Other plants, including Payra, Rampal, and SS Power I, also reported reduced output due to fuel shortages, the report noted.

Industry sources attribute the payment delays to Bangladesh’s ongoing dollar shortage. Recent payments to Adani Power have ranged from $20 million to $50 million – substantially lower than the monthly dues of $90-100 million, according to TOI.

In light of recent changes in Bangladesh’s political landscape, Adani has been exploring alternative markets to meet India’s growing energy demands, with a potential integration into the local grid through a substation in Lakhisarai, Bihar.