Zakir Hossain / Dhaka
Adani Power has agreed to fully restore its 1,600 MW power supply to Bangladesh within the next few days, ending a three-month-long reduction due to payment delays. However, the company has refused Dhaka’s requests for discounts and tax benefits, sources told Reuters.
Adani had cut power supply by 50% on October 31 last year, citing delayed payments as Bangladesh struggled with a foreign exchange shortage. One unit of the plant was shut down on November 1, and Bangladesh requested continued supply at half capacity, citing lower winter demand and ongoing payment issues.
With summer approaching, the Bangladesh Power Development Board (BPDB) urged Adani to resume full supply, to which the company has now agreed. However, despite multiple meetings, Adani has refused to offer any financial concessions, including a discount program that ended in May and tax benefits worth millions of dollars.
“They don’t want to give up on anything, even $1 million,” one source said, highlighting Adani’s firm stance on the power purchase agreement (PPA). The pricing dispute revolves around tariff calculations, with Adani previously stating that BPDB owed $900 million, while BPDB Chair Rezaul Karim estimated it at $650 million.
Karim insisted that “there is no big issue with Adani” and that full supply would resume as BPDB increases payments beyond $85 million per month. Adani Power has yet to issue an official statement but previously clarified that power dispatch depends on procurement requirements.
The two sides are expected to continue discussions in the coming weeks to address outstanding financial issues.