Adani Power has agreed to fully restore electricity supply to Bangladesh by next week after months of reduced deliveries caused by payment delays. However, despite Bangladesh’s requests, Adani has refused to grant any discounts or tax benefits, keeping financial negotiations unresolved stated in a report.
The Indian power company had halved its supply to Bangladesh on October 31 due to delayed payments, with one of its two 800 MW units shutting down on November 1. As winter demand was low, Bangladesh’s Power Development Board (BPDB) requested continued partial supply. Now, with summer demand approaching, BPDB has requested full restoration of power, to which Adani has agreed.
Sources familiar with the matter indicate that Adani Power remains firm on financial terms and has rejected Bangladesh’s plea for concessions. The two parties engaged in a virtual meeting on Tuesday, and further discussions are expected in an attempt to resolve their differences. A source close to the matter remarked that Adani is unwilling to concede even a small amount in negotiations, asserting its rights under the power purchase agreement.
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BPDB Chairperson Md Rezaul Karim has downplayed the issues, stating that full power supply will resume soon. However, financial disagreements persist. BPDB is working to increase payments beyond the current $85 million per month, but the total outstanding amount remains contentious. In December, an Adani source claimed Bangladesh owed $900 million, while BPDB estimated the figure at $650 million.
The core of the dispute centers on how power tariffs are calculated. Bangladesh previously received a year-long discount from Adani, which ended in May. BPDB has since requested tax benefits worth millions of dollars and a reinstatement of the discount program, but Adani has declined to comply.
Despite these unresolved issues, the resumption of full power supply is expected to bring relief to Bangladesh as demand rises with the summer months. Further discussions between the two parties are anticipated as they seek to reach a financial understanding.
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