Bangladesh urges Adani Power to restore full 1,600 MW supply amid payment settlement

Bangladesh has asked Adani Power to fully restore its 1,600-megawatt power supply from its Jharkhand plant in India after more than three months of reduced output. The supply was halved on October 31 due to payment delays, forcing the shutdown of one of the two 800-megawatt units on November 1. The Bangladesh Power Development Board (BPDB) has since been paying $85 million per month to clear outstanding dues and requested Adani to restart the second unit.

BPDB Chairperson Md. Rezaul Karim confirmed that Adani attempted to resume full supply on Monday, but technical issues caused a delay. "As per our requirement today, they have planned to synchronise the second unit, but due to the high vibration, it didn't happen," Karim told Reuters. Despite this, BPDB officials maintain that there are no major issues with Adani and efforts are ongoing to restore full operations.

The payment dispute stems from a 2017 power purchase agreement under which Adani Power supplies electricity exclusively to Bangladesh. In December, an Adani source stated that BPDB owed the company around $900 million, while BPDB claimed the amount was about $650 million. The pricing issue revolves around tariff calculations, with reports stating that Adani's power costs Bangladesh 55% more than India's average electricity export price.

A Bangladesh court has ordered a review of the agreement by a committee of experts, with findings expected this month. This examination could potentially lead to contract renegotiations. Last year, Bangladesh’s interim government accused Adani of withholding tax benefits received from the Indian government, a claim Adani denied, stating that it had upheld all contractual obligations.

Amid these developments, shares of Adani Power surged over 4% on Tuesday, reaching ₹511.85 on the Bombay Stock Exchange and pushing the company’s market capitalization to ₹1.92 lakh crore. BPDB and Adani officials are scheduled to meet virtually to discuss ongoing concerns, following a previous meeting held recently.