Business

Bangladesh Clears $437 Million Dues To Adani Power; Restores Full Supply From Godda Plant

Bangladesh has cleared pending dues worth USD 437 million to Adani Power in June, resolving a long-standing payment issue. The payment includes carrying costs and past obligations under the 2017 power purchase agreement.

Officials said Bangladesh is now current on payments and making regular monthly transfers of USD 90–100 million.

A Letter of Credit covering two months of billing and a sovereign guarantee for all dues is now in place. These measures provide added security to Adani Power and improve financial predictability for both parties.

Following this resolution, Bangladesh has requested full power supply from both units of Adani Power’s Godda plant.

Located in Jharkhand, the 1,600 MW plant supplies about 10% of Bangladesh’s total electricity demand.

Sources, however, confirmed that power from Godda ranks among the most competitively priced in BPDB’s merit order dispatch list.

Earlier, Bangladesh struggled to meet payment obligations due to rising import costs and domestic political turmoil.

The situation worsened after the Russia-Ukraine war and political unrest that led to the ousting of Prime Minister Sheikh Hasina in August 2024.

In response to payment defaults, Adani Power halved its electricity supply in November 2024.

Supplies returned to full capacity in March 2025 after Bangladesh resumed consistent monthly payments.

Over the past few months, the country has cleared its outstanding liabilities.

Authorities in Bangladesh also investigated the power purchase agreement but found no adverse issues. This has further strengthened confidence in the deal’s legitimacy and execution.

Adani Power recently merged the Godda unit’s operating subsidiary with its parent company to improve financial and operational efficiency.

Lenders are now confident about improving Adani Power’s credit rating from AA to AA+, reducing borrowing costs.

The resolution of payment issues, however, confirms the long-term viability of the India-Bangladesh energy partnership.

The Godda plant is now fully integrated into Bangladesh’s power grid and playing a key role in energy stability. These developments mark a significant turnaround in bilateral energy cooperation and financial assurance for cross-border electricity supply.

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Geetanjali Mishra

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