Adani Power of India reduces electricity supply to Bangladesh by more than 60% due to payment dispute.
Adani Power has reduced its electricity supply to Bangladesh by over 60% due to a payment dispute involving more than $800 million in outstanding dues.
India's Adani Power has further cut electricity supply to Bangladesh as it seeks to recover over $800 million in outstanding dues, according to data from Bangladesh’s grid operator and two sources familiar with the situation. The company, which exports power to Dhaka from its 1,600 MW Godda plant in Jharkhand, India, reduced supply this month to between 700 MW and 750 MW, down from around 1,400 MW-1,500 MW in early August.
As of Thursday night, the supply was further reduced to approximately 520 MW, according to data from Power Grid Bangladesh and an official with the Bangladesh Power Development Board (BPDB).
“We are gradually settling the dues and will take alternative measures if the supply is cut off. We will not allow any power producer to hold us hostage,” said Muhammad Fauzul Kabir Khan, power and energy adviser to Bangladesh’s caretaker government, in a statement to Reuters on Thursday. Despite Bangladesh speeding up its payments, including lifting a November 7 deadline set by Adani, the reduced supply persists, the BPDB official said.
Reuters reported earlier this week that Bangladesh had opened a letter of credit for $170 million to Adani and was fast-tracking payments.
Adani Power has not responded to inquiries from Reuters regarding the supply reduction or payment details from Dhaka.
A source at Adani Power told Reuters that the supply cuts are being implemented in accordance with Bangladesh’s demand as well as outstanding payments.
Both the Bangladesh Power Development Board and Adani Power officials spoke anonymously due to their lack of authorization to speak publicly.
Bangladesh has been facing significant financial strain, struggling to pay its energy bills amid rising fuel costs and inflation following Russia’s invasion of Ukraine in 2022. Political instability, including the ousting of Prime Minister Sheikh Hasina in August, has also worsened the country's economic challenges.
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