There is a discrepancy in the estimated total outstanding dues. While Adani claims the amount exceeds US$900 million, including interest, BPDB officials estimate it to be closer to US$700 million.
Indian energy company Adani Power Limited (APL) has formally requested the intervention of Bangladesh’s Finance Adviser to resolve over US$900 million in unpaid dues owed by the Bangladesh Power Development Board (BPDB), creating a diplomatic and financial challenge amid the country’s ongoing dollar crunch.
In a letter sent recently to Finance Adviser Dr. Salehuddin Ahmed, APL Managing Director Anil Sardana appealed for immediate steps to facilitate payment of the outstanding amount, which he said has placed the company under severe financial stress. The dues, as of the end of May 2025, stem from long-overdue payments for electricity supplied to Bangladesh under a cross-border agreement.
APL has also requested that adequate funds be allocated to Bangladesh Krishi Bank (BKB) or another authorized institution to enable the clearing of the overdue payments. The Bangladesh Bank has already authorized the state-run BKB to process the payments on behalf of BPDB.
“We have been repeatedly informed that due to inadequate availability of foreign exchange, outstanding dues exceeding US$900 million by end of May-2025 have built up, thus leaving us in tremendous hardships and in a situation of embarrassment with the lenders,” Sardana wrote in the letter.
APL, a key supplier of power to northern Bangladesh, has been operating a 1,496-megawatt Ultra Super Critical Thermal Power Plant (USCTPP) in Godda, Jharkhand, since April 2023. This facility, developed under a 2015 long-term Power Purchase Agreement (PPA), supplies electricity exclusively to Bangladesh via a dedicated transmission line.
Despite maintaining an uninterrupted supply of electricity, APL has reportedly been receiving payments far below its regular monthly billing of approximately US$80 million. So far, the company has only been paid US$10-20 million per month, according to officials.
BPDB Chairman Engineer Md Rezaul Karim acknowledged the situation, stating, “We are trying to make payment against the outstanding dues of Adani Power Limited.” However, he noted that the board is unlikely to settle the entire amount in one go. A development on the issue is expected “in a day or two,” he added, without elaborating.
Discrepancy
There is a discrepancy in the estimated total outstanding dues. While Adani claims the amount exceeds US$900 million, including interest, BPDB officials estimate it to be closer to US$700 million.
In the letter, APL warned that the persistent delays in payment were endangering its financial health. “The delayed and inadequate payments from the BPDB have badly affected our financial position,” it read, adding that the company had resorted to expensive short-term borrowing to maintain operations and procure fuel.
The letter further revealed that lenders were threatening to withdraw financial support unless payments resumed promptly. This, the company argued, could severely disrupt its ability to continue supplying power to Bangladesh reliably.
Bangladesh’s foreign exchange crisis has been affecting various sectors, including energy imports and overseas debt servicing. The government has been prioritizing essential imports, resulting in delays in large-scale payments such as those to foreign power suppliers.
With Bangladesh’s energy demand rising and domestic generation under pressure, the power from APL’s Godda plant plays a vital role, particularly in northern regions. Any disruption in this supply could significantly impact industrial and residential consumers.
As both governments explore solutions, industry observers stress the importance of timely financial commitments under cross-border power deals, especially those involving strategic partners like India.
One source told OWSA: “Negotiations are ongoing, and further developments are expected as the finance and energy authorities work to resolve the issue without disrupting the critical power supply to millions of Bangladeshis.”
Image: Hippopx
