The Bangladesh government paid $384 million to India's Adani Power in June. As a result, a significant portion of Bangladesh's arrears under the controversial power supply agreement has been cleared, according to the Indian daily The Hindu.
Two sources, speaking anonymously, told The Hindu that Bangladesh paid $384 million to Adani by June 27. In total, Bangladesh was supposed to pay $437 million in June. With this payment, Adani's "acceptable" dues will be settled up to March 31 of this year.
The sources further revealed that if Bangladesh can pay the remaining amount by the end of the month, the total outstanding claim by Adani will reduce to approximately $500 million. However, according to Adani Group's claims, a significant amount of debt will still remain.
After the Russia-Ukraine war began, the global prices of energy and coal surged, and due to political instability within the country, Bangladesh failed to make regular payments as per the 2017 agreement. As a result, by the end of 2024, Adani reduced the power supply to Bangladesh by half. However, with some payments being made since March this year, full power supply was resumed.
Including the most recent payment, Bangladesh has now paid almost $1.5 billion to Adani, with a total bill of about $2 billion. According to sources, if payments continue on schedule, Adani has also offered a discount of up to $20 million for delay fees from January to June.
However, disagreements still remain between Bangladesh and Adani Group regarding the power plant’s production capacity and the price of coal. This is why differences persist between the 'claimed' and 'acceptable' amounts owed.
A spokesperson for Adani Power confirmed the payment but declined to comment on the details of the dues. He stated, "These discussions are ongoing and at a personal level."
It is worth mentioning that after the government change in 2024, there was significant criticism of the 2017 agreement made under the Sheikh Hasina administration. Under the leadership of the interim government, Dr. Yunus initiated a review of the agreement. A high-level committee formed under his guidance is currently working on this issue.
According to the agreement, Adani Power, based in Jharkhand, India, was supposed to supply 100% of the electricity produced by its coal-based power plant in Godda to Bangladesh for 25 years. After the partial suspension of electricity supply, full supply of 1,600 MW was resumed in March this year.
