Bangladesh Pays $384 Million to Adani Power, Settles Majority of Dues
In a significant development in South Asia’s energy sector, Bangladesh has paid $384 million to India’s Adani Power, clearing the majority of its outstanding dues under a key cross-border electricity supply agreement.
This large settlement comes as part of a power purchase agreement (PPA) signed in 2017 between Adani Power and the Bangladesh Power Development Board (BPDB), under which Adani supplies electricity from its 1,600 MW Godda coal-fired plant in Jharkhand, India.
Key Points of the Payment Agreement
Total Paid: Bangladesh transferred $384 million in June 2025, covering dues through March 2025.
Total Billed So Far: Since the start of supply, Bangladesh has been billed around $2 billion.
Total Paid to Date: With this payment, the total paid by Bangladesh now stands at approximately $1.5 billion.
Outstanding Balance: The remaining amount due is around $500 million, a significant drop from earlier claims of nearly $900 million.
Full Electricity Supply Resumed: Adani Power has resumed uninterrupted power supply to Bangladesh as of March 2025 after months of reduced output due to delayed payments.
Background: The Adani-Bangladesh Power Deal
The 25-year power deal was structured to strengthen regional energy cooperation between India and Bangladesh. However, rising coal prices, currency depreciation, and fiscal constraints led to Bangladesh falling behind on payments in late 2024. This resulted in reduced electricity supply from Adani’s Godda plant.
After a change in Bangladesh’s government and the appointment of a new interim administration, the country prioritized settling international dues and restoring energy security.
Implications of the Payment
Stabilized Power Supply: Bangladesh can now ensure more consistent electricity availability during peak demand periods.
Improved Investor Confidence: Clearing dues boosts Bangladesh's credibility in international energy and infrastructure markets.
Reduced Energy Risk: Rebuilding the trust between Adani and BPDB minimizes the risk of future supply cuts.
Frequently Asked Questions (FAQs)
Q1: Why did Bangladesh owe money to Adani Power?
A: Bangladesh had accumulated outstanding dues due to delayed payments related to coal imports, rising fuel prices, and fiscal constraints. The payments were for electricity supplied under a 25-year agreement with Adani Power.
Q2: How much money does Bangladesh still owe?
A: Following the $384 million payment, the remaining balance owed to Adani Power is estimated at $500 million.
Q3: Has Adani Power resumed full power supply to Bangladesh?
A: Yes. Full supply from the Godda coal-fired plant resumed in March 2025 after Bangladesh began making regular payments again.
Q4: What is the total value of the energy agreement?
A: The long-term contract is valued at over $2 billion, with continuous billing and supply spread over 25 years.
Q5: Will this payment impact Bangladesh’s foreign reserves?
A: While the payment is substantial, clearing such international dues is expected to stabilize long-term energy access and may reduce future cost risks.
Published on: June 28, 2025
Uploaded by: PAVAN
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