Bangladesh paid $384 million to Adani Power in June, considerably decreasing its excellent dues below an influence provide settlement with the Indian agency, in accordance to sources.
In June (until June 27), Bangladesh has paid $384 million of the dedicated $437 million to be paid in the course of the month, two sources conscious of the matter mentioned.
This would clear Bangladesh’s “admitted” claims until March 31.
With this, Adani’s “claimed” dues, whereas nonetheless substantial, will come down to round $500 million (assuming Bangladesh meets its month-end dedication), they mentioned.
Bangladesh has struggled to meet its cost obligations below the 2017 deal, as rising import prices following the Russia-Ukraine battle in 2022 and home political turmoil – which led to the ouster of prime minister Sheikh Hasina — strained the nation’s funds.
As a consequence, Adani had halved provide final 12 months and full provides had been resumed in March 2025 after the nation’s month-to-month funds began protecting some of the dues.
Nearly $1.5 billion paid
With the newest funds, Bangladesh has paid practically $1.5 billion of the roughly $2 billion complete billed quantity.
Adani has reportedly agreed to waive late cost surcharge (LPS) for January-June interval, amounting to about $20 million, if Bangladesh retains its cost dedication.
Sources mentioned each events are engaged in dialogue to resolve some points associated to coal value and plant capability calculations. These are the important thing causes behind the distinction between “claimed” and “admitted” dues.
When contacted, an Adani Power spokesperson confirmed the funds however did not share particulars on “claimed” and “agreed” dues stating these discussions are non-public.
The 2017 energy provide deal between Adani Power and Bangladesh had are available for scrutiny after the ouster of the Sheikh Hasina-led authorities final 12 months. Interim authorities, led by Nobel Peace prize laureate Muhammad Yunus, referred to as for the formation of a high-level committee, comprising power and authorized consultants, to re-examine the ability buy settlement (PPA).
Under the 2017 deal, Adani Power’s Godda energy plant in Jharkhand was to provide 100 per cent of the electrical energy generated from burning coal, to Bangladesh for a interval of 25 years.
After cost defaults, Adani had minimize provides by half in November 2024. It restored full electrical energy provide, which is round 1,600 MW, in March after the nation diminished liabilities.
Bangladesh stepped up repayments from July final 12 months, clearing month-to-month dues. This got here after the nation suffered from elevated energy shortages in rural areas.
Struggling economic system
Bangladesh has been struggling to generate adequate greenback revenues to cowl the associated fee of important imports similar to electrical energy, coal, and oil. Its international foreign money reserves declined amid months of student-led protests and political unrest, which culminated within the ousting of the Sheikh Hasina authorities in August 2024.
The interim authorities that succeeded her sought a further $3 billion mortgage from the International Monetary Fund (IMF) on high of the present $4.7 billion bailout package deal.
Adani’s energy cope with Bangladesh was one of the numerous below Sheikh Hasina, which the present interim authorities has referred to as opaque. Besides Adani Power, different Indian state-owned corporations additionally promote energy to Bangladesh, together with NTPC and PTC India Ltd.
