Bangladesh has halved its power imports from Adani Power, citing a combination of lower winter demand and ongoing payment disputes. This decision follows Adani Power’s move on October 31 to reduce its power supply by 50%, attributing the cut to delays in payments as Bangladesh faces a foreign exchange crisis. The power supply reduction has resulted in Bangladesh instructing Adani to continue providing only half of the usual electricity, while the country promises to settle the existing unpaid dues.
Md. Rezaul Karim, chairperson of Bangladesh Power Development Board (BPDB), expressed frustration with the reduction, stating, “We were shocked and angry when they cut our supply.” He explained that while demand for electricity has decreased during the winter, the supply from Adani has been cut, leaving one of the plant’s two units offline since November 1. The two units of the $2 billion Jharkhand-based power plant each have an 800-megawatt capacity.
According to sources at BPDB, Bangladesh had sourced around 1,000 MW of power per month from Adani Power during the previous winter season. However, due to the ongoing disputes over unpaid dues, Adani Power has been operating at only 41.82% capacity in November—the lowest rate observed this year.
Adani Power, which is involved in a 25-year agreement with Bangladesh that was signed in 2017, has been under pressure to resolve the outstanding payments. A spokesperson for Adani Power confirmed that the company is still supplying electricity but expressed concern over the sustainability of operations due to the growing unpaid dues. Despite these concerns, the spokesperson noted that the company is in continuous dialogue with BPDB officials and the Bangladesh government, who have assured that the dues will be cleared soon.
This situation has been further complicated by the allegations against Gautam Adani, the chairman of Adani Group, regarding his involvement in a bribery scheme in India, although he has denied these charges.
The ongoing payment delays and reduced power imports come at a time when Bangladesh is already grappling with its foreign exchange crisis. With the winter season seeing a dip in power demand, the situation has led to reduced electricity consumption and further tensions between the two parties.
