Bangladesh asks Adani to fully restore power supply

Bangladesh has asked Adani Power to fully resume electricity supplies from its 1,600-megawatt plant in India, following over three months of reduced output due to payment disputes and low winter demand.  

Under a 25-year power purchase agreement signed in 2017 during former Prime Minister Sheikh Hasina’s tenure, Adani has been supplying electricity from its $2 billion plant in Jharkhand, India, exclusively to Bangladesh. However, on October 31, Adani halved its supply due to payment delays amid Bangladesh’s foreign exchange shortages. This led to the shutdown of one 800-megawatt unit on November 1, reducing the plant’s operational capacity to about 42%.  

The Bangladesh Power Development Board (BPDB) has since been paying $85 million monthly to clear outstanding dues and has now urged Adani to restart the second unit. "As per our requirement today, they planned to synchronise the second unit, but due to high vibration, it didn’t happen," BPDB Chairperson Md Rezaul Karim told Reuters, citing technical issues that delayed the unit’s restart on Monday.  

Karim added, "We are making a payment of $85 million per month and trying to pay more to reduce the overdue. Now, there is no big issue with Adani."  

A virtual meeting between BPDB and Adani officials was scheduled for Tuesday to address ongoing issues, according to a source familiar with the matter.  

The dispute stems from disagreements over power tariffs, with Adani’s electricity costing Bangladesh about 55% more than the average price of Indian power imports. A Bangladesh court has ordered an expert committee to review the 2017 contract, with findings expected this month, potentially leading to renegotiations.  

Last year, Bangladesh’s interim government accused Adani of breaching the agreement by withholding tax benefits meant for the Jharkhand plant. Adani denied the allegations, stating it had upheld all contractual obligations.  

The situation is further complicated by broader scrutiny of energy deals signed under Hasina’s government, which fled to India in August following student-led protests. In September, Bangladesh formed a panel to review major energy agreements, including the Adani deal.