Bangladesh has significantly cleared its outstanding dues to India’s Adani Power, making a substantial one-time payment of $437 million in June for electricity imports. This important payment takes care of all amounts that Adani Power is owed until March 31 of this year. It represents a significant move toward restoring the cross-border power purchase agreement and reinforcing energy cooperation between the two nations. This recent payment, described by Bangladesh Bank officials as Adani Power’s largest single remittance from Bangladesh to date, replaces previous monthly payments that typically ranged from $90-$100 million. The comprehensive settlement includes arrears, delayed interest, and other charges, restoring the financial and legal normalcy of the power purchase agreement (PPA) that had faced scrutiny due to payment delays. Concerns previously raised by Bangladesh regarding certain aspects of the agreement have also reportedly been addressed. Adani Power supplies electricity to Bangladesh from its 1,600 MW Godda thermal power plant in Jharkhand, India, under a 2017 agreement for a period of 25 years. The financial strain on Bangladesh, exacerbated by global import cost surges and domestic financial challenges, had led to payment defaults, causing Adani Power to halve its electricity supply in November 2024. However, full supply from both 800 MW units resumed in March 2025 after Bangladesh began making regular monthly payments.Having paid all outstanding dues, Bangladesh has directed Adani Power to keep both units operating at full capacity according to the requirements of the Bangladesh Power Development Board (BPDB). An agreement between both sides stated that if unpaid bills were cleared by June 30, fees for late payments from the previous fiscal year would be dropped, which Bangladesh accomplished successfully. To ensure timely future payments, Bangladesh has further secured the arrangement by providing a Letter of Credit (LC) equivalent to two months’ worth of bills (around $180 million) and a sovereign guarantee for all remaining dues. This significant financial resolution is expected to strengthen the energy partnership between Bangladesh and India, ensuring a stable and reliable power supply for Bangladeshโs growing energy needs. The commitment demonstrated by both parties in resolving the dues amicably paves the way for continued cooperation and reinforces the importance of long-term energy security in the region, promising sustained economic growth and stability for Bangladesh.
