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Bangladesh Requests Full Power Supply Restoration from the Adani Group

In November 2017, Adani Power entered into a 25-year power purchase agreement (PPA) with BPDB under the Government of then-Prime Minister Sheikh Hasina for the Adani Bangladesh project.

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Bangladesh Requests Full Power Supply Restoration from the Adani Group

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  1. BANGLADESH REQUESTS FULL POWER SUPPLY RESTORATION FROM THE ADANI GROUP

  2. The Bangladesh Government is currently looking for a full restoration of power supply from Adani Power three months after it was reduced to half because of pending dues. The state-run Bangladesh Power Development Board (BPDB) has recently mentioned that it has expedited the clearing of the outstanding dues to Adani Power, the energy wing of the Adani Group. It has also requested the company to resume power supply from the second unit of the Godda power plant in Jharkhand.

  3. The Adani Bangladesh Project: The Adani Group’s First Transnational Power Project Over the past few days, there has been a lot of controversy regarding the power supply to Bangladesh from the Adani Godda power plant in Jharkhand. In November 2017, Adani Power entered into a 25-year power purchase agreement (PPA) with BPDB under the Government of then-Prime Minister Sheikh Hasina for the Adani Bangladesh project. Under this deal, the Indian conglomerate had built a thermal power plant in the Indian state of Jharkhand having a capacity of 1,496 MW. As per the power purchase agreement (PPA), this plant is supposed to supply electricity exclusively to Bangladesh through a 400kV DC transmission line.

  4. The Controversies Surrounding The Adani Bangladesh Project: A few months after the Adani Group had started supplying power from the Godda power plant, Bangladesh was overcome with political turmoil and financial distress. This resulted in the Prime Minister Hasina getting ousted. A new interim government took power last year. Because of these ongoing issues, the Bangladesh government was no longer in a position to pay for the power being supplied by the Adani Group. As a result, the country’s overdue payments for power supplied by Adani Power began to accumulate, reaching as high as 843 million USD in November 2023.

  5. The Adani Group constantly requested the Bangladesh government to clear the outstanding dues. However, when no such actions were taken, Adani Power started reducing the electricity power to Dhaka. During Adani Power’s third-quarter earnings call, the company CEO confirmed that around 800 million USD remained unpaid by Bangladesh. The unpaid payment stands at 700 million USD. Additionally, there is a 100 million USD difference because of reconciliation issues as the country has not accounted for the late payment surge.

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