Bangladesh clears Adani Power dues, restoring full power supply

Bangladesh has settled its outstanding payments to Adani Power, paying $437 million in June to clear all dues, including carrying costs under the 2017 power purchase agreement (PPA). This is the country's largest single payment under the deal, signalling a renewed commitment to a reliable power supply from India, sources familiar with the development said.

The payments put to rest longstanding concerns over Bangladesh’s delayed remittances. According to insiders, Bangladesh has now become consistent in its monthly payments, averaging $90–100 million over the last few months. In addition, it has set up a Letter of Credit (LC) equivalent to two months of billing and provided a sovereign guarantee for future dues, offering Adani Power a robust financial cushion.

Full power supply from both units restored

With the payment crisis resolved, the Bangladesh Power Development Board (BPDB) has requested Adani to resume full power supply from both units of its Godda plant in Jharkhand. The 1,600 MW facility accounts for roughly 10% of Bangladesh’s electricity demand and is among the country’s most cost-efficient sources, according to BPDB’s merit order dispatch data.

After previous payment failures, Adani had halved its electricity supply in November 2024. Full operations resumed in March 2025, once India's eastern neighbour began clearing its dues regularly.

Political stability, financial reforms ease pressure.

Bangladesh’s financial situation had worsened following the 2022 Russia-Ukraine war, a spike in import bills, and months of domestic unrest that culminated in the fall of Prime Minister Sheikh Hasina's government in August 2024. Her interim successor turned to the International Monetary Fund (IMF) for an additional $3 billion on top of the existing $4.7 billion bailout package to stabilise the economy.

The interim administration has increased transparency efforts, including a critical review of previous power deals. It labelled many of them—including the Adani contract—opaque. Nonetheless, the resolution of payment issues and due diligence findings that uncovered no irregularities in the Adani agreement have restored confidence among stakeholders.

Positive outlook for Adani Power

With all dues cleared and guaranteed payments in place, lenders are reportedly looking to upgrade Adani Power’s credit rating from AA to AA+, which could reduce borrowing costs. The Godda plant, originally operated under a standalone subsidiary, has now been integrated into Adani Power’s main business, enhancing operational and financial efficiency.

The latest developments reaffirm the strategic value of the India-Bangladesh energy partnership, with the Godda plant now fully embedded in Bangladesh’s national grid. Other Indian firms, including NTPC Ltd and PTC India Ltd, also supply electricity to Bangladesh under separate agreements.