Bangladesh requests Adani Power to resume full electricity supply

Staff Reporter

Bangladesh has requested India’s Adani Power to fully resume electricity supply from its 1,600-megawatt power plant.

A report from Reuters, citing a Bangladesh Power Development Board (BPDB) official, stated that reduced demand during winter and payment disputes had halved the supply for over three months.

Adani Power, under a 25-year agreement signed in 2017 during Prime Minister Sheikh Hasina’s tenure, supplies electricity exclusively to Bangladesh from two 800-megawatt units located in India’s Jharkhand state.

Due to payment delays caused by Bangladesh’s foreign exchange crisis, the plant halved its supply on October 31, leading to the shutdown of one unit on November 1. The plant then operated at approximately 42% capacity.

BPDB announced it has been paying $85 million monthly to clear outstanding dues and has requested Adani to resume supply from the second unit.

BPDB Chairman Md. Rezwanul Karim stated that Adani planned to restart the second unit on Monday but was unable to do so due to high vibration levels. He added, “We are paying $85 million monthly and trying to pay more to reduce the dues. There are no major issues with Adani now.”

A source, speaking on condition of anonymity, revealed that BPDB and Adani officials were scheduled to hold a virtual meeting on Tuesday following a recent discussion.

Adani Power’s spokesperson declined to comment immediately.

In December, an Adani source estimated BPDB’s outstanding dues at $900 million, while Karim suggested the figure was closer to $650 million.

The payment dispute primarily stems from tariff pricing issues based on a formula averaging two indices. According to Reuters, Adani’s electricity costs for Bangladesh are about 55% higher than the average electricity price in Dhaka.