Adani Restores Full Power Supply to Bangladesh After Four-Month Disruption
Adani Power has resumed full electricity supply to Bangladesh, marking the end of a four-month disruption that began in October 2024 over unpaid dues. The Indian conglomerate had previously halved the 1,600 MW supply from its coal-fired plant in Jharkhand, India, after Bangladesh failed to meet payment obligations amid an ongoing economic crisis.
Full Power Supply Resumes
The full supply was quietly restored about two weeks ago, confirmed Rezaul Karim, chairman of the Bangladesh Power Development Board (BPDB), who stated that Bangladesh is now making regular payments and receiving power as per requirement. The resumption comes just ahead of the summer season, offering much-needed relief to Bangladesh’s national grid, which typically faces high stress during peak demand months.
Dispute Over Dues
The dispute dates back to late 2023 when Bangladesh’s dues to Adani reportedly exceeded $850 million. Payment delays triggered by financial strain led Adani to reduce power delivery on October 31, 2024. While Bangladesh later requested that the reduced supply continue during winter, citing lower seasonal demand, the dues remained a sticking point between both sides. The outstanding amount has since been reduced to $800 million, and BPDB expects to clear the balance within six months.
Controversial Power Deal Under Scrutiny
Adani supplies power to Bangladesh under a 25-year contract signed in 2017 during the tenure of former Prime Minister Sheikh Hasina. The deal has long attracted criticism within Bangladesh, with many arguing it disproportionately favors Adani over the country’s consumers. Tensions intensified after Hasina was ousted in August 2024 following mass protests.
In the wake of her removal, the interim government led by Nobel laureate Muhammad Yunus began reviewing major energy contracts, including the Adani agreement. The administration has accused the Indian conglomerate of breaching contract terms by denying agreed tax benefits and has pushed for renegotiation, calling the deal more expensive than comparable agreements. Adani has denied all allegations of wrongdoing.
Despite the controversy, the restoration of power comes as a critical relief for Bangladesh, particularly as it braces for soaring summer demand. However, the political and contractual tensions surrounding the deal are far from settled, with further scrutiny expected in the months ahead.
