Bangladesh Urges Adani to Resume Full Power Supply Amid Contract Dispute

Bangladesh has asked Adani Power to resume full power supply from its plant in India after a halt due to payment disputes and reduced winter demand. The plant, supplying exclusively to Bangladesh, faced operational disruptions. Evaluations of the contractual terms and pricing disputes are ongoing.

Bangladesh has officially requested Adani Power to restore full electricity supply from its 1,600-megawatt facility in India, following a disruption of over three months due to reduced winter demand and payment discord. The news came from a Bangladeshi official, reflecting strained energy relations between the two countries.

Sources reveal the supply cut began on October 31st as Bangladesh grappled with foreign exchange issues, prompting the shutdown of a unit at Adani's plant in Jharkhand. Bangladesh's Power Development Board has been making monthly payments of $85 million to reconcile outstanding dues, now urging Adani to resume operations from the second unit.

The situation has intensified as both parties engage in a pricing dispute concerning the power tariffs under the 2017 agreement. A court-ordered examination of the contract is underway, with potential renegotiations anticipated. In parallel, legal issues confront the Adani Group, with U.S. prosecutors indicting its founder Gautam Adani on bribery charges, an allegation the group deems unfounded.