Adani Proceeds to Terminate Electricity Supply to Bangladesh

India's Adani Power has significantly reduced its electricity supply to Bangladesh, cutting it down to around 520 MW from about 1,400-1,500 MW in early August. This decision comes as Adani Power seeks to recover over $800 million in unpaid dues from Bangladesh, primarily related to its 1,600 MW Godda plant in Jharkhand, which supplies power to Dhaka.

Despite efforts by Bangladesh to address the payment issues—such as opening a $170 million letter of credit for Adani—Bangladesh has still been receiving a reduced supply. The government has expedited payments, and a Nov. 7 payment deadline previously imposed by Adani was lifted. However, the ongoing cuts reflect both Bangladesh's financial strain, caused by expensive fuel and goods imports exacerbated by the Ukraine war, and the gradual nature of the payment process.

Bangladesh's Power and Energy Adviser, Muhammad Fauzul Kabir Khan, indicated that the country would seek alternative measures to ensure the power supply is not fully halted, asserting that it will not allow any power supplier to hold them hostage. Despite the payments being accelerated, Adani Power has not responded to media queries regarding the specific details of the payment reductions or adjustments. The situation reflects the broader financial difficulties Bangladesh faces amid political instability and economic challenges.