Bangladesh clears all dues to Adani Power

Bangladesh has cleared all outstanding dues to India’s Adani Power, making a one-time payment of $437 million in June for electricity imports.

Officials familiar with the matter said that the payment covers all receivables owed to Adani Power up to March 31 of this year.

Bangladesh Bank officials said Adani Power's largest single payment was cleared so far in June. Previously, the company typically received an average of $90-100 million per month from Bangladesh.

According to sources, with the clearance of all outstanding bills, including arrears, delayed interest and other charges, the cross-border power purchase agreement between Bangladesh and Adani Power has returned to a normal financial and legal state.

Concerns raised by Bangladesh regarding the agreement have also reportedly been resolved, the sources added.

According to Bangladesh Power Development Board (BPDB), Adani Power supplies electricity to Bangladesh from its Godda power plant in Jharkhand, India.

The sources indicated that with all dues settled, Bangladesh has instructed Adani to keep both 800 MW units (totaling 1,600 MW) operational as per the demand of the BPDB.

An understanding reached between Adani and Bangladesh stipulated that delayed payment charges would be waived if arrears for the last fiscal year were cleared by June 30. Bangladesh complied with this condition.

To ensure timely future payments, Bangladesh has now provided a Letter of Credit (LC) equivalent to two months' worth of bills, approximately $180 million, and a sovereign guarantee for all remaining dues.

In May last, a report stated that Bangladesh's arrears to Adani Power were nearly $900 million.

Adani Power's Chief Financial Officer, Dilip Jha, then informed analysts that the total bill to Bangladesh was $2 billion, of which $1.2 billion had been collected by the end of the fiscal year FY2024-25. An additional $136 million was billed for delayed payments.