Bangladesh has taken a significant step by reducing its electricity imports from Adani Power, a move attributed to the decline in winter demand and ongoing payment disputes worth millions of dollars. The decision to decrease the import of electricity from Adani Power's $2 billion plant in Jharkhand came after months of financial challenges faced by Bangladesh due to a foreign exchange crisis.
Adani Power, under a 25-year agreement signed in 2017, has been asked by Bangladeshi officials to operate at half its usual supply level while waiting for pending dues to be cleared. The plant's capacity, which can produce 1,600 megawatts, has been running at minimal levels since November 1, with one unit remaining offline and uncertainty surrounding the timeline for full supply to resume. Bangladesh currently owes Adani approximately $650 million, with the total dues estimated to be around $900 million, despite partial payments made in recent months.
In response to the situation, a company spokesperson has mentioned ongoing discussions with senior officials of the Bangladesh Power Development Board (BPDB) and the government to address the payment issues promptly. Bangladesh has been paying a higher price for electricity from Adani, well above the average charged by other Indian suppliers, leading to the government providing substantial subsidies to cover these costs. This has sparked calls in Bangladesh for electricity prices, not only from Adani but from all sources, to be reduced to levels below the average retail prices to alleviate the strain on government subsidies.