Adani Power will fully restore the 1,600 MW power supply from its Jharkhand plant to Bangladesh, but it has rejected Dhaka’s request for discounts and tax benefits, Reuters reported, citing sources. The restoration follows a request from the Bangladesh Power Development Board (BPDB) amid rising summer demand.
Despite agreeing to resume full supply, Adani Power has declined BPDB’s demands for discounts and concessions potentially worth millions of dollars. Bangladesh owes Adani approximately $650 million, though company sources estimate the outstanding dues have reached nearly $900 million.
The $2 billion plant in Jharkhand, which operates under a 25-year power purchase agreement signed in 2017, had reduced supply on October 31 due to overdue payments. Since November 1, the facility has been running at minimal capacity, with one unit offline and no confirmed timeline for complete restoration. A Reuters-reviewed document revealed that the plant operated at just 41.82% capacity last month, its lowest level this year.
Adani Power had sent a letter on October 27, warning BPDB that if payments were not made, it would suspend power supply on October 31 as per the terms of the power purchase agreement. Payments of $85 million in November and $97 million in October have only marginally reduced the outstanding balance.
The company highlighted that BPDB has neither provided a $170.03 million letter of credit (LC) from Bangladesh Krishi Bank nor cleared the accumulated dues of $846 million. In winter, Bangladesh had imported around 1,000 MW per month from Adani’s plant. With full supply expected to resume next week, it remains uncertain how the unpaid dues will affect the long-term power arrangement between the two parties.
