Adani threatens to suspend power to Bangladesh from Nov 11

Adani Power of India has threatened to suspend electricity supply to Bangladesh from November 11 if outstanding payments are not cleared by November 10.

Officials from the Bangladesh Power Development Board (BPDB) and the Power Division confirmed that at the end of October, Abhinash Anurag, Head of Energy Regulatory and Commercial at Adani Power, sent a formal letter to the BPDB chairman. The letter stated that despite repeated requests, BPDB had not settled $496 million in outstanding dues, of which $262 million is acknowledged by BPDB itself.

Adani Power cited clauses 13.2 (i) and (ii) of the 2017 Power Purchase Agreement (PPA), giving them the legal right to suspend supply due to repeated non-payment. The company also noted that even if supply is halted, it would still be entitled to capacity payments under the government’s “reliable capacity” provisions.

Fouzul Kabir Khan, Advisor for Power, Energy, and Mineral Resources, confirmed receiving the letter. On Tuesday night (November 4), he said, “We have received the letter from Adani. They have stated that if the outstanding dues are not cleared by November 10, they will cut the electricity supply. We will see how to proceed and will enter into discussions.”

In November 2024, Adani Power had reduced electricity supply to Bangladesh by nearly 60% over $800 million in unpaid bills, triggering a power crisis. BPDB disputed the figure, saying Adani used its own accounting methods.

According to BPDB’s 2023-24 annual report, Bangladesh receives an average of 932.31 MW per month from Adani’s Godda Power Plant in India’s Jharkhand state (capacity: 1,600 MW). The plant was built exclusively for exports to Bangladesh. The previous Sheikh Hasina government had signed the PPA with Adani, allowing the company to supply electricity solely to Bangladesh. In 2018, Indian regulations permitted Adani to export electricity only to neighbouring countries. After the fall of Sheikh Hasina’s government on August 5, 2024, the Indian government amended the law, allowing Adani to sell electricity domestically as well.