MAR 28 – Indian conglomerate Adani has restored full electricity supply to Bangladesh, four months after it reduced the feed by half over unpaid dues.
Adani Power supplies 1,600 MW to Bangladesh from its coal-powered plant in India’s eastern state of Jharkhand.
“We’re making regular payments to Adani and receiving power as per our requirements,” Rezaul Karim, chairman of the Bangladesh Power Development Board (BPDB), told Bloomberg on Thursday.
The supply was restored about two weeks ago.
The BBC has reached out to the Adani Group for comment.
Adani had halved the supply to Bangladesh on 31 October as the country, grappling with an economic crisis, missed a series of payments.
Subsequently, Bangladesh told the Indian conglomerate to continue supplying only half the power as demand was expected to be lower during the winter, although it promised to address the old dues.
Reports said dues had exceeded $850m but have now dropped to $800m. They are expected to be cleared within the next six months.
Adani had faced delays in payments for months before it reduced the supply as the two sides disagreed over the total amount owed.
The restoration of supply will ease pressure on Bangladesh’s national grid and help prevent blackouts during the peak summer months, which usually see a surge in electricity demand.
Adani provides electricity to Bangladesh under a 25-year contract signed in 2017 during the tenure of ousted prime minister Sheikh Hasina, who shares a warm relations with India and where she is living since she fled her country.
Critics in Bangladesh have often described the deal as more favourable to Adani than the country’s power consumers.
The deal has come under increased scrutiny since the Hasina government was ousted in August 2024 following nationwide protests.
Soon after assuming office, the Bangladesh interim government, led by Nobel Peace prize laureate Muhammad Yunus, appointed a panel of experts to review major energy deals signed by the ousted leader.
The government sought to renegotiate the deal, claiming it was costlier than other similar power deals and accusing Adani of breaching the agreement by withholding tax benefits – a charge the group denies.
