Bangladesh Pays Off $437 Million Dues to Adani Power, Restores Cross-Border Power Agreement

Bangladesh has cleared all its outstanding payments to India’s Adani Power with a one-time payment of $437 million in June, settling dues up to March 31 this year. This marks the largest single payment ever made to Adani Power, whose previous monthly payments ranged between $90 million and $100 million. The settlement has normalised the financial and legal status of the power purchase agreement between Bangladesh and Adani Power, resolving prior concerns raised by Bangladesh. Adani Power, supplying electricity from its Godda power plant in Jharkhand, will continue to operate both 800 MW units as needed. Under the agreement, delayed payment charges were waived as Bangladesh settled arrears before June 30. To ensure future timely payments, Bangladesh has issued a Letter of Credit worth two months of bills ($180 million) and a sovereign guarantee for remaining dues. Earlier reports indicated arrears had neared $900 million, while Adani Power’s CFO noted total outstanding bills at $2 billion, with $1.2 billion collected by end of FY2024-25 and $136 million billed for delays.