Bangladesh reduces Adani Power dues with $384 million payment, leaves $500 mn in dues unsettled

Bangladesh has notably decreased its unpaid obligations to Adani Power by making a $384 million payment in June as part of a power supply contract. This payment decreases the total remaining amount from the ‘admitted’ claims as of March 31 and is included in the $437 million pledged by the end of the month. By making this payment, Bangladesh has now cleared nearly $1.5 billion of the about $2 billion total amount billed, with approximately $500 million remaining as ‘claimed’ dues.

The 2017 power supply agreement between Bangladesh and Adani Power has undergone scrutiny, particularly after economic difficulties worsened by the Russia-Ukraine conflict and internal political instability. This turmoil resulted in the removal of Prime Minister Sheikh Hasina, putting additional pressure on the nation’s economy. Because of these economic challenges, Bangladesh faced difficulties in fulfilling its payment responsibilities, leading Adani Power to reduce the electricity supply by 50% in November 2024. As Bangladesh started to settle its monthly payments, complete supplies restarted in March 2025.

Adani Power is said to have consented to forgo late payment fees from January to June 2025, totaling around $20 million, on the condition that Bangladesh fulfills its payment obligations. References suggest that the gap between ‘claimed’ and ‘accepted’ dues stems from current negotiations between both parties concerning coal pricing and plant capacity assessments.

A spokesperson for Adani Power verified the payments but refrained from providing specifics on the “claimed” and “agreed” obligations, mentioning that such discussions are confidential. Bangladesh has encountered difficulties in producing enough foreign currency earnings required to pay for vital imports like electricity, coal, and oil. The nation’s foreign reserves have fallen, resulting in heightened power shortages in rural regions and escalating political turmoil. The turmoil prompted the interim administration to seek further financial support from the IMF, in addition to the current $4.7 billion bailout package.

The interim government, headed by Nobel prizewinner Muhammad Yunus, has described current agreements, such as the Adani power deal, as unclear and has started establishing a high-level committee to reassess these arrangements.

In addition to Adani Power, other Indian companies like NTPC and PTC India also supply electricity to Bangladesh. The persistence of these energy agreements is essential for Bangladesh to ensure a consistent power supply, particularly in rural regions. While the nation maneuvers through its financial and political terrain, addressing these debts and the conditions of the power agreements will continue to be a key issue for the interim administration and global monitors.

The scenario highlights the intricacies associated with global power treaties, particularly amid shifting economic circumstances and political developments. The participation of global organizations such as the IMF emphasizes the worldwide aspect of these financial and energy issues. Furthermore, the current conversations and possible modifications to the agreements demonstrate the fluidity of global trade and finance, in which flexibility and negotiation are essential for sustaining stability and advancement.

Adani Power shares surged 13.8% this week to Rs 605, supported by strong trading volumes. The stock is above key EMAs, with the 5-day EMA at 558.3. Despite a 15.64% yearly decline, it shows a 14.50% increase in 2023, gaining 19.03% over six months and 9.14% in the last month.