BPDB , Adani Power to sit for settling coal tariff dispute

To resolve the ongoing coal tariff dispute, Bangladesh Power Development Board (BPDB) and Adani Power Ltd agreed to hold a high-level in-person meeting without fixing any date.

"These are the outcome of our meeting on June 23, it was a virtual meeting but Adani requested us for a revision of the plant's dependable capacity, citing results from an April 2025 performance test," a senior official of BPDB told the daily Observer while sharing the outcome of the meeting.

A disagreement over the coal tariff has directly affected the per-kilowatt-hour cost of electricity from the 1,600MW Jharkhand power plant what the BPDB wants to revise.

At the meeting, BPDB reiterated its proposal to align coal prices with the model used for the 1,320MW Payra power plant. However, Adani rejected the suggestion, arguing that coal tariffs were already fixed under the existing Power Purchase Agreement (PPA).

Adani officials told the meeting that the plant's dependable capacity has increased from 1,396MW to 1,570MW. BPDB responded that such a change would require a supplementary agreement.

As of May 2025, BPDB estimates its outstanding dues to Adani at $485 million, while Adani claims the amount exceeds $700 million. The discrepancy stems from differing methods of calculating coal tariffs.

BPDB uses the Indonesian Coal Index (ICI3) as its benchmark, while Adani applies a blended index that includes higher-priced Australian coal from Newcastle-reportedly inflating the price by $10-$12 per ton and widening the billing gap.

"Adani Power official also told the meeting that Bangladesh will not get the discount on payment as it failed to pay the bill by March 19, the amount of the discount is $US 50 million," official said.

"We will sit tomorrow to review the outcome of the meeting with the high-ups," BPDB Chairman Engr. Rezaul Karim said adding that Adani presented their position on coal pricing and other related matters.

Due to payment delays, BPDB has accrued a late payment surcharge of $78.68 million, growing by roughly $6.07 million each month.

On May 23 with his talks with Power Division Secretary Farzana Mamtaz, Adani Power CEO S.B. Khylia urged for swift resolution, citing financial pressure. 

He also followed up on a January proposal to waive around $50 million in surcharges for the January-June 2025 period, expressing concern over BPDB's lack of response.

Adani has since agreed to waive $12.5 million, while BPDB is seeking an immediate payment of $33 million as a partial settlement.

Amid growing scrutiny over the deal, the government has formed a high-level national review committee led by retired Justice Moinul Islam Chowdhury. 

The committee is tasked with reviewing the Adani agreement and seven other large-scale power deals that were signed without competitive bidding during the previous Awami League administration.