BD regains Adani power flow after clearing bulk of arrears
News Desk :
Bangladesh has significantly reduced its outstanding payments to India’s Adani Power under a long-term power supply agreement, and the company remains optimistic about recovering the remaining dues, estimated at approximately $900 million, according to its Chief Financial Officer.
Speaking during a post-earnings call with analysts on Thursday, Adani Power CFO Dilip Jha confirmed that Bangladesh had resumed regular payments. “We are supplying full power to Bangladesh… The payment we are receiving now exceeds the current month’s billing,” he said. “We are hopeful that not only will the current dues continue to be paid in full, but the accumulated arrears will also be cleared.”
The outstanding amount stems from a 2017 agreement between Bangladesh and Adani Power, which committed to supplying electricity for 25 years from the Godda Power Plant in India’s Jharkhand state. According to the deal, 100 percent of the electricity generated from the plant was to be exported to Bangladesh.
Bangladesh’s payment difficulties began after the Russia-Ukraine war triggered a surge in global energy prices, placing pressure on the country’s import-dependent economy. The situation was further complicated by domestic political unrest in August 2024, which led to the ousting of the then-prime minister.
As a result of the non-payment, Adani Power had halved its electricity supply to Bangladesh last year. However, the company stated that nearly $1.2 billion of the total $2 billion billed amount has now been paid by Bangladesh.
Despite previous setbacks, the company expressed confidence in the financial commitment of the Bangladeshi authorities. “We are encouraged by the steady payments and the government’s willingness to settle the dues,” Jha added.
The 25-year power supply agreement, one of the largest cross-border electricity deals in South Asia, plays a key role in supporting Bangladesh’s energy security, especially as the country seeks to stabilise its power grid amid rising domestic demand and global energy volatility.