Bangladesh Clears All Pending Dues To Adani Power, Resolves Power Purchase Pact
Key Points
The country made its largest-ever single payment to Adani Power, settling all outstanding dues under the 2017 power purchase agreement.
With payments regularized, Bangladesh has requested Adani to supply electricity from both units of the 1,600 MW Godda plant, which meets 10% of its power demand.
The resolution of dues and establishment of Letters of Credit and sovereign guarantees may lead to an upgrade in Adani Power’s credit rating from AA to AA+.
New Delhi, Jul 1: Reaffirming the Adani Power Ltd assets as a reliable and cost-competitive power source for meeting the country's growing energy needs, Bangladesh has made its single largest payment of $437 million last month, clearing all pending dues to the company.
The neighbouring country has now requested Adani Power, part of the diversified Adani Group, to supply power from both units as per BPDB (Bangladesh Power Development Board) schedule, since the dues are now settled, according to sources on Tuesday.
The payment includes carrying costs, and issues related to the power purchase agreement (PPA).
Moreover, a Letter of Credit (LC) worth about two months of billing and sovereign guarantee for all dues as additional security has been established, informed sources added. The LCs are worth about two months of billing and a sovereign guarantee for all dues.
Adani Power supplies electricity to Bangladesh from a dedicated 1,600 MW plant located in Godda district of Jharkhand, meeting 10 per cent of the country's power demand.
Under the 2017 deal, Adani Power's Godda power plant was to supply 100 per cent of the electricity generated from burning coal to Bangladesh for a period of 25 years.
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Bangladesh had in the past struggled to meet its payment obligations under the 2017 deal owing to rising import costs and domestic political issues. As a result, Adani halved its supply last year, but full supplies were resumed in March 2025 after the country's monthly payments started covering some of the dues.
Over the last couple of months, Bangladesh has been paying $90-100 million per month. Last month, the country paid $437 million. This happened after the country suffered from increased power shortages in rural areas.
With these developments, lenders are now confident of improving Adani Power Ltd’s credit rating to AA+ from the current AA, which will further bring down its cost of funds.
According to sources, the latest developments vindicate the contract established between the Bangladesh government and Adani Power.
(IANS)
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