Bangladesh Urges Adani Power to Resume Full Power Supply Amid Disputes

Bangladesh has requested Adani Power to fully resume operations of its 1,600-megawatt plant in India. The supply had been halved due to low demand and payment issues. Ongoing negotiations address financial disputes and examine contractual terms, potentially leading to contract renegotiations

Bangladesh has requested Adani Power to fully restore electricity supplies from its 1,600-megawatt plant in India. The request follows a period of reduced supply, attributed to low winter demand and payment disputes, officials confirmed. The plant, located in Jharkhand state, became operational under a 2017 contract signed by former Prime Minister Sheikh Hasina.

Adani, citing payment delays amid Bangladesh's foreign exchange challenges, reduced the supply on October 31. This led to a shutdown on November 1, decreasing plant operations to 42% capacity. Bangladesh's Power Development Board has since been addressing dues, paying $85 million monthly, while urging Adani to restart the second unit despite technical setbacks.

The supply agreement has become contentious, with Bangladesh owing Adani between $650 and $900 million, according to varying accounts. A legal review of the contract terms could lead to renegotiation. Meanwhile, Adani Group faces separate allegations in the U.S. concerning a bribery scheme, which the company has denied.