According to sources, the Indian energy company asked the Bangladesh Power Development Board (BPDB) to pay $112.7 million, approximately 10,000 crore Indian rupees, to maintain uninterrupted electricity supply.
Background of the Payment Dispute
The payment dispute traces back to a 2017 agreement under which Adani was to supply 1,600 megawatts of electricity to Bangladesh for 25 years.
Over the years, unpaid dues reportedly reached nearly $700 million. While partial payments were made during the interim government’s tenure, recent months have seen slower settlements, complicating the situation.
Government Response and Payment Plans
BPDB Chairman Rezaul Karim stated that revenue collection constraints have affected the pace of payments but confirmed that a plan exists to resume regular settlements, with increased payments expected from March.
Previous Review of Energy Contracts
A six-member government committee, led by a retired High Court judge, had earlier reviewed energy contracts signed under previous administrations.
The report flagged the Adani agreement as financially burdensome, noting significant annual costs to Bangladesh.
Despite these findings, Adani highlighted that electricity supply has not been interrupted, even with substantial pending payments.
Implications for Cross-Border Energy Agreements
The dispute underscores the challenges of cross-border energy agreements and the importance of timely settlements to ensure uninterrupted power supply.
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