Dhaka, Bangladesh – December 2, 2024: Amid a growing payment dispute, Bangladesh has significantly reduced its electricity purchases from Adani Power, an Indian energy company. The reduction is attributed to Bangladesh’s foreign exchange crisis and a substantial unpaid balance of around $900 million. While Adani Power initially reduced its supply to Bangladesh due to payment delays, the Bangladesh Power Development Board (BPDB) has requested the company to maintain only half the supply, with assurances that outstanding dues will be cleared soon.
Adani Power had been providing electricity to Bangladesh under a 25-year agreement signed in 2017, with a power plant in Jharkhand supplying up to 1,000 megawatts (MW) per month. Despite this, the cost per unit of electricity supplied by Adani is the highest among Indian providers, which has raised concerns in Bangladesh due to its energy subsidy burden.
The situation remains tense as the Bangladeshi government seeks to lower energy costs or renegotiate the agreement, while Adani continues to push for timely payments. Although Bangladesh has made some payments recently, the dispute over pricing and delayed dues remains a critical issue, highlighting broader concerns about the country’s energy sector and its reliance on foreign energy imports.
