After dispute over bill payment, Bangladesh BIG request to Gautam Adani’s company over…

After the payment disputes over power supply, the relationship between Adani Power and Bangladesh authorities appears to be stabilizing.

After a request from the Bangladeshi government, Adani Power is poised to fully resume electricity supply to Bangladesh. Bangladesh’s officials have assured Adani that outstanding dues will soon be cleared, leading to optimism in the markets. This news triggered a rise in Adani Power’s shares on Tuesday.

Bangladesh Requests Full Power Supply Restoration

According to a Navbharat Times report, citing Bangladeshi officials, the country has asked Adani Power to restore full electricity supply from its 1600 MW plant in India. The supply had been reduced three months ago due to payment disputes. 

25-Year Power Supply Agreement

The power supply arrangement between Adani Power and Bangladesh was made in a 2017 agreement between Adani and then-Prime Minister Sheikh Hasina. Under the deal, Adani Power committed to supplying electricity to Bangladesh for 25 years. The power is generated from Adani’s $2 billion plant in Jharkhand, which comprises two 800 MW units.

Bangladesh Settling Outstanding Payments

On October 31, 2024, Adani Power reduced supply to Bangladesh by half due to delayed payments. At the time, Bangladesh was grappling with financial crises and, forcing it to request that Adani continue supplying only half the electricity than promised. Subsequently, one unit of the Jharkhand plant was shut down on November 1.

According to media reports, the Bangladesh Power Development Board (BPDB) has been paying Adani Power $85 million per month to settle outstanding dues. BPDB has now requested Adani to restore power supply from the second unit, though technical issues have delayed its operation. BPDB stated, “We are making monthly payments of $85 million and trying to clear the arrears. Our aim is to reduce the outstanding amount, and we no longer have major issues with Adani.”

This development shows both parties, ensuring continued energy availability for Bangladesh and financial recovery for Adani Power.