Adani Power Warns Bangladesh Of Supply Halt Over Rs 7,000 Cr Unpaid Dues

Adani Power Jharkhand Limited (APJL), a fully owned subsidiary of Adani Power, has issued a warning that it will suspend electricity supply to Bangladesh if nearly USD 850 million (around Rs 7,200 crore) in outstanding dues are not cleared by November 7. The announcement, reported by The Times of India, underscores the intensifying energy challenge for Bangladesh amid ongoing financial strain.

Local media reports indicate that APJL has already cut its electricity supply to Bangladesh by half due to unpaid bills, now totalling USD 846 million. According to data from Power Grid Bangladesh PLC, the Adani facility scaled back output significantly on Thursday night, causing a supply deficit exceeding 1,600 megawatts (MW) nationwide. With a maximum generation capacity of 1,496 MW, the plant managed to generate just 700 MW from a single unit during this period, reported The Daily Star.

In an earlier letter addressed to the Bangladesh Power Development Board (PDB), Adani Power had urged that dues be cleared by October 30. “Failure to make payments,” the October 27 letter warned, “would compel the company to suspend power supply in accordance with the Power Purchase Agreement (PPA).” The PDB, however, has yet to secure a letter of credit (LC) worth USD 170.03 million from Bangladesh Krishi Bank, which would address some of the outstanding dues.

While the PDB has been making weekly payments of roughly USD 18 million, these payments have fallen short of the USD 22 million owed, leading to mounting unpaid balances. Though a recent payment was made to Krishi Bank, a dollar shortage has reportedly prevented the bank from issuing the necessary LC.

Adani Power has emphasized that during any suspension of power supply, it retains the right to collect capacity payments as stipulated in Section 13.2(1) of the PPA. Following the formation of an interim government in Bangladesh—headed by Nobel Laureate Professor Muhammad Yunus after former Prime Minister Sheikh Hasina’s departure in August—Adani Power has increased pressure for payment resolution. Adani Group Chairman Gautam Adani has reportedly communicated directly with Chief Adviser Yunus on the matter, seeking swift settlement of the dues.

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