Bangladesh pays $384 million to Adani Power to clear majority of dues

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 with sources.

In June (until June 27), Bangladesh has paid $384 million of the dedicated $437 million to be paid through the month, two sources conscious of the matter stated.

This would clear Bangladesh’s “admitted” claims until March 31.

With this, Adani’s “claimed” dues, whereas nonetheless substantial, will come right down to round $500 million (assuming Bangladesh meets its month-end dedication), they stated.

Bangladesh has struggled to satisfy 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 end result, 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 a number of the dues.

Nearly $1.5 billion paid

With the newest funds, Bangladesh has paid almost $1.5 billion of the roughly $2 billion whole 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 stated each events are engaged in dialogue to resolve some points associated to coal price 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 specialists, to re-examine the facility buy settlement (PPA).

Under the 2017 deal, Adani Power’s Godda energy plant in Jharkhand was to produce 100 per cent of the electrical energy generated from burning coal, to Bangladesh for a interval of 25 years.

After cost defaults, Adani had reduce provides by half in November 2024. It restored full electrical energy provide, which is round 1,600 MW, in March after the nation lowered 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 financial system

Bangladesh has been struggling to generate enough greenback revenues to cowl the price of important imports comparable to electrical energy, coal, and oil. Its overseas 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 an extra $3 billion mortgage from the International Monetary Fund (IMF) on prime of the prevailing $4.7 billion bailout bundle.

Adani’s energy cope with Bangladesh was one of many many 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.