Dhaka: In an ongoing dispute over unpaid dues, Adani Power has further reduced its electricity supply to Bangladesh, worsening the energy situation in the South Asian nation. According to recent data from Power Grid Bangladesh and the Bangladesh Power Development Board (BPDB), power supply has been progressively reduced over the past few weeks, with the latest cut bringing the supply down to approximately 520 MW. This marks a significant reduction from the 1,400–1,500 MW Adani Power had been providing earlier this year.
Background of the Power Dispute
Adani Power, which operates the 1,600 MW Godda power plant in Jharkhand, India, has been supplying electricity to Bangladesh under a bilateral agreement. However, Bangladesh has been unable to clear outstanding payments, with reports indicating that Adani is seeking to recover more than $800 million in unpaid bills. As a result, the company reduced its supply to Bangladesh this month, initially dropping from 1,400 MW to 700 MW–750 MW in August. The latest cut of 520 MW is part of an ongoing effort by Adani to press for payment.
Despite Bangladesh’s efforts to settle the dues, including the opening of a $170 million letter of credit in early November and a renewed push to meet payment deadlines, the dispute continues to escalate. According to an official with the BPDB, the payment deadline initially set by Adani for November 7 was extended, but the issue remains unresolved.
Bangladesh’s Energy Crisis Deepens
The reduction in electricity supply has hit Bangladesh’s energy sector hard. The country, already facing economic challenges due to high fuel and import costs exacerbated by the ongoing war in Ukraine, now faces an added strain on its power grid. In addition, political turmoil in Bangladesh, including the recent political unrest that led to the ouster of Prime Minister Sheikh Hasina, has further complicated the situation.
Bangladesh’s caretaker government remains adamant in its stance, with Muhammad Fauzul Kabir Khan, the country’s energy adviser, stating, “We are gradually paying the dues and will take alternative measures if anyone stops the supply. We will not let any power producer hold us hostage.”
Implications for the Future
As Bangladesh scrambles to pay off its dues, the question remains whether Adani Power will further reduce supply, impacting daily life for millions of people. The Bangladesh government has pledged to take necessary measures to resolve the crisis and ensure that energy supply remains stable. However, the country’s growing energy bill burden amid political and economic challenges continues to pose a significant risk.
