BPDB pays $30m to Adani to avert power supply suspension

 
The Bangladesh Power Development Board (BPDB) has paid USD 30 million to Adani Power to ensure continued electricity supply to the national grid, avoiding a possible suspension threatened by the Indian power giant.

BPDB opened a letter of credit (LC) worth $30 million through Bangladesh Krishi Bank on Sunday-the final day of Adani's payment deadline. "There was no supply disruption from Adani Power, as BPDB had already made a partial payment. We have also communicated with Adani officials about disbursing the undisputed amount in phases," a Power Division official told The Daily Observer.

Data from the Power Grid Company of Bangladesh (PGCB) shows that Adani Power supplied 1,132 megawatts (MW) of electricity to the grid at 1am on Tuesday (November 11), against a forecast of 1,436MW. The payment came after Adani Power's head of energy regulatory and commercial, Avinash Anurag, in a letter to BPDB Chairman Md Rezaul Karim, warned that the company would suspend electricity supply to Bangladesh from November 11 if the BPDB failed to clear its "long-held" dues by November 10.

Adani claimed that BPDB had failed to settle $496 million in outstanding bills despite repeated reminders and communications.

BPDB, however, disputed the figure, saying its actual dues stood at around $256 million. Citing continuous non-payment, Adani Power referred to sections 13.2(i)(i) and (ii) of the 2017 Power Purchase Agreement (PPA), which allow the company to suspend power supply in the event of a buyer's default.

Even if supply is halted, Adani Power noted that it would still be entitled to capacity payments-fixed charges covering loan servicing, staff salaries, and depreciation-based on the plant's "dependable capacity."

Under the agreement, BPDB must pay between $25 million and $28 million in capacity charges each month, even if no power is delivered.

This is not the first time Adani Power has raised concerns over unpaid bills. In November 2024, the company reduced power supply to Bangladesh by about 60 per cent, claiming overdue bills of $800 million-a figure BPDB also disputed, saying Adani's calculations were "self-derived." Adani Power's 1,600MW Godda Power Plant in India's Jharkhand state was built exclusively to export electricity to Bangladesh. The plant currently supplies an average of 932MW per month under the bilateral power purchase arrangement.