Adani Power has issued a final deadline of November 7 for Bangladesh to settle an outstanding $850 million debt, after partially reducing power supply over unpaid dues. Adani had previously set an October 31 deadline for Bangladesh Power Development Board (BPDB) to pay and secure a letter of credit of $170 million, but BPDB’s attempt to secure an LC through Krishi Bank did not align with their power purchase agreement terms, reportedly due to dollar shortages.
Adani’s Godda plant in Jharkhand, which normally supplies up to 1,496 MW, is currently delivering around half capacity, worsening Bangladesh’s power shortage. Other major plants are also operating below capacity due to fuel shortages. Monthly payments from Bangladesh have been inconsistent, covering only a fraction of the expected $90-100 million, which threatens the plant’s financial viability as Bangladesh is its only power buyer. The delay prompted Adani to consider supplying to the domestic market, potentially linking its output to India’s grid via Bihar. Adani’s executives are hopeful for resolution, but continued nonpayment risks permanent supply cuts, further impacting Bangladesh’s energy stability amidst its financial struggles.
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