Adani Power Jharkhand Limited (APJL), a subsidiary of India’s Adani Power, has cut 50% of its power supply to Bangladesh due to unpaid bills totaling USD 846 million, according to The Daily Star. Power Grid Bangladesh PLC reported that on Thursday night, Adani reduced supply from its 1,496 MW plant to 700 MW, leading to a power shortfall of over 1,600 MW across Bangladesh.
Unpaid Bills and Legal Notices
On October 27, Adani Power sent a notice to Bangladesh’s Power Development Board (PDB), requesting payment of outstanding dues by October 30. The letter warned that failure to pay would result in reduced power under the terms of the Power Purchase Agreement (PPA), and Adani proceeded with the partial suspension of supply on October 31. According to the PPA, coal prices for the power plant are based on two global indices — the Indonesian and Australian Newcastle indexes — making power generation costs higher.
Payment Challenges and Dollar Shortages
A PDB official explained that Bangladesh had previously cleared part of the debt, but the remaining amount continues to grow. Adani Power has been charging more per week since July, reportedly increasing the gap between the weekly payment of USD 18 million from PDB and the actual charge of USD 22 million. Additionally, a dollar shortage has prevented the PDB from securing a letter of credit (LC) for USD 170.03 million with Bangladesh Krishi Bank.
The one-year supplementary deal, signed to stabilize coal pricing below other local coal-fired plants, ended recently, allowing Adani to revert to PPA pricing. This has reportedly increased the coal costs and, subsequently, the power bills for Bangladesh.
Appeals to Bangladesh’s Interim Government
Since an interim government led by Nobel Laureate Professor Muhammad Yunus assumed office in Bangladesh, Adani has urged the administration to address these overdue payments. Gautam Adani, chairman of the Adani Group, also directly appealed to Chief Adviser Yunus to resolve the issue and ensure a stable power supply.
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