Gautam Adani, chairman of the Adani Group, has called upon Bangladesh’s government to swiftly settle the $800 million in unpaid dues owed by the Bangladesh Power Development Board (BPDB) for electricity supplied by Adani Power, reported the Economic Times.
The request, outlined in a letter dated August 27, was addressed to Muhammad Yunus, the country’s chief advisor. Adani emphasised the need for immediate action to address the financial strain caused by the outstanding payments.
In his letter, Adani expressed concern over the financial pressure his company is facing.”We are in constant dialogue with the Bangladesh government and have appraised them of this unsustainable situation where we are meeting not just our supply commitment but also [commitments] to our lenders and suppliers in spite of rising receivables.”, reported the Financial Times.
He urged the Bangladeshi authorities to intervene, stating, “I would request your kind intervention in the early liquidation of $800 million of receivables due from Bangladesh Power Development Board.”
Adani Power supplies electricity to Bangladesh from its 1.6 GW coal-fired power plant in Godda, Jharkhand, which began operations in June 2023. The power supply agreement with BPDB spans 25 years, but the company has been receiving only partial payments—roughly $40-45 million per month against the expected $90-95 million. This shortfall has resulted in a backlog of dues over the last eight to nine months.
Adani also requested Bangladesh to make regular payments to avoid further accumulation of dues. “May we request for regular payment of routine bills as we continue with our commitment on supplies, and in addition, significant tranches be made each month to liquidate outstanding dues?” he added.
The Godda power plant was built with a $2 billion investment and was completed in a record 3.5 years, despite disruptions caused by the Covid-19 pandemic. Adani noted that the power plant and the associated transmission infrastructure were constructed to meet Bangladesh’s energy needs, reaffirming his company’s dedication to supporting the country. “I would like to reiterate our commitment to your country’s energy security and infrastructure development,” he said.
The request for prompt payment comes at a critical time for Bangladesh’s interim government, led by Muhammad Yunus, which is grappling with financial instability.
The new administration blames previous opaque and costly infrastructure deals for the economic challenges, with Yunus’s top energy adviser, Muhammad Fouzul Kabir Khan, acknowledging the significant backlog. “We’ve been firefighting since joining [the government],” Khan said, revealing that the total power liabilities stand at $3.7 billion, of which $492 million is owed to Adani Power.
Despite the growing debt, Adani Power has assured the government that it will continue to provide reliable and competitively priced electricity. In a statement, Adani Power said, “We remain steadfast in our commitment and will continue to supply reliable and competitively priced power from our Godda facility to Bangladesh, despite mounting dues.”
Khan also indicated that the interim government is actively working to stabilise the country’s finances, reaching out to international lenders such as the World Bank for assistance. At the same time, the administration is looking to renegotiate and review existing energy contracts to ensure they are more cost-effective. “We don’t want it to be discriminatory,” Khan explained. “Whoever will give us value for money, the lowest price, and good quality, we’ll choose them.”
The power deal with Adani, signed under former Prime Minister Sheikh Hasina, has long been a subject of criticism, with activists claiming that the cost of imported power from Godda is too high for Bangladesh. However, Adani has defended the agreement, stating that “the cost of power is very competitive when compared to other imported coal-based power plants.”
As Bangladesh continues to battle chronic energy shortages, Adani reiterated his company’s commitment to supporting the country’s energy requirements. He also dismissed rumours of seeking alternative markets for the power generated at Godda, confirming that the plant is solely dedicated to Bangladesh.
“Currently, our Godda plant is not connected to the Indian grid, and hence there is no question of looking for any alternate supply market,” Adani stated, affirming his hope for reciprocity from the Bangladeshi authorities in settling the overdue payments.
The request, outlined in a letter dated August 27, was addressed to Muhammad Yunus, the country’s chief advisor. Adani emphasised the need for immediate action to address the financial strain caused by the outstanding payments.
In his letter, Adani expressed concern over the financial pressure his company is facing.”We are in constant dialogue with the Bangladesh government and have appraised them of this unsustainable situation where we are meeting not just our supply commitment but also [commitments] to our lenders and suppliers in spite of rising receivables.”, reported the Financial Times.
He urged the Bangladeshi authorities to intervene, stating, “I would request your kind intervention in the early liquidation of $800 million of receivables due from Bangladesh Power Development Board.”
Adani Power supplies electricity to Bangladesh from its 1.6 GW coal-fired power plant in Godda, Jharkhand, which began operations in June 2023. The power supply agreement with BPDB spans 25 years, but the company has been receiving only partial payments—roughly $40-45 million per month against the expected $90-95 million. This shortfall has resulted in a backlog of dues over the last eight to nine months.
Adani also requested Bangladesh to make regular payments to avoid further accumulation of dues. “May we request for regular payment of routine bills as we continue with our commitment on supplies, and in addition, significant tranches be made each month to liquidate outstanding dues?” he added.
The Godda power plant was built with a $2 billion investment and was completed in a record 3.5 years, despite disruptions caused by the Covid-19 pandemic. Adani noted that the power plant and the associated transmission infrastructure were constructed to meet Bangladesh’s energy needs, reaffirming his company’s dedication to supporting the country. “I would like to reiterate our commitment to your country’s energy security and infrastructure development,” he said.
The request for prompt payment comes at a critical time for Bangladesh’s interim government, led by Muhammad Yunus, which is grappling with financial instability.
The new administration blames previous opaque and costly infrastructure deals for the economic challenges, with Yunus’s top energy adviser, Muhammad Fouzul Kabir Khan, acknowledging the significant backlog. “We’ve been firefighting since joining [the government],” Khan said, revealing that the total power liabilities stand at $3.7 billion, of which $492 million is owed to Adani Power.
Despite the growing debt, Adani Power has assured the government that it will continue to provide reliable and competitively priced electricity. In a statement, Adani Power said, “We remain steadfast in our commitment and will continue to supply reliable and competitively priced power from our Godda facility to Bangladesh, despite mounting dues.”
Khan also indicated that the interim government is actively working to stabilise the country’s finances, reaching out to international lenders such as the World Bank for assistance. At the same time, the administration is looking to renegotiate and review existing energy contracts to ensure they are more cost-effective. “We don’t want it to be discriminatory,” Khan explained. “Whoever will give us value for money, the lowest price, and good quality, we’ll choose them.”
The power deal with Adani, signed under former Prime Minister Sheikh Hasina, has long been a subject of criticism, with activists claiming that the cost of imported power from Godda is too high for Bangladesh. However, Adani has defended the agreement, stating that “the cost of power is very competitive when compared to other imported coal-based power plants.”
As Bangladesh continues to battle chronic energy shortages, Adani reiterated his company’s commitment to supporting the country’s energy requirements. He also dismissed rumours of seeking alternative markets for the power generated at Godda, confirming that the plant is solely dedicated to Bangladesh.
“Currently, our Godda plant is not connected to the Indian grid, and hence there is no question of looking for any alternate supply market,” Adani stated, affirming his hope for reciprocity from the Bangladeshi authorities in settling the overdue payments.
