Bangladesh Scrambles to Settle Electricity Dues Before Deadline

Bangladesh is rushing to settle more than $800 million in outstanding payments to Adani Power before a November 7 deadline, following a sharp reduction in electricity exports from Adani's 1,600 MW Godda plant in Jharkhand, India. Currently, power supply to Bangladesh has been cut by more than half, from around 1,400 MW to 700-800 MW, as Adani faces coal import challenges necessary for power production.

Bangladesh has grappled with payment delays due to high import costs since the 2022 Ukraine crisis. The recent political upheaval, which resulted in Prime Minister Sheikh Hasina’s ouster in August, has further strained the country’s financial stability.

In recent months, Bangladesh has taken steps to address the dues. Muhammad Fouzul Kabir Khan, the interim government's power and energy adviser, confirmed recent payments, including $96 million cleared last month and an additional $170 million via a new letter of credit this month. Bangladesh has also begun reviewing its contract with Adani, following reports that the rate charged is 27% higher than that of other private Indian producers.

Meanwhile, Adani Power's CFO Dilip Kumar Jha recently stated that there were "no issues" with the power supply to Bangladesh, though payment concerns persist as the deadline approaches.