Adani Power Ltd is set to hold negotiations with senior officials of the Bangladesh Power Development Board (BPDB) on June 23 virtually to resolve a coal tariff dispute involving the 1,600MW Jharkhand power plant that exports electricity to Bangladesh, according to officials from both parties.
The disagreement centers on coal pricing, which directly affects the per-kilowatt-hour cost of electricity.
As of May 2025, BPDB estimates its outstanding dues to Adani at $485 million. Adani, however, claims the figure exceeds $700 million, citing differences in tariff calculation methods.
Tariff Dispute at Core
BPDB uses the Indonesian Coal Index (ICI3) as the benchmark, while Adani calculates tariffs using a blended index incorporating Australian coal prices, particularly from Newcastle and the Newcastle Basin.
The latter reportedly inflates the rate by $10–$12 per ton, resulting in a significant billing gap.
“This is our only major point of contention,” said BPDB Chairman Engr. Rezaul Karim. Both sides will send four-member teams to the talks, with BPDB’s delegation led by its Member (Company Affairs).
Discussions will take place under the framework of the existing Power Purchase Agreement (PPA), Karim added.
Adani’s Legal Panel
Adani’s negotiating team includes four legal experts: Prof. Lawrence Boo and Lucy Reed from The Arbitration Chambers (TAC), and Toby Landau and Prof. V.K. Rajah from Duxton Hill Chambers, Singapore. The panel was appointed by Adani’s CEO under Section 19 of the PPA, which outlines the dispute resolution process.
Surcharge and Waiver Proposal
Due to delayed payments, BPDB has accrued a late payment surcharge of $78.68 million, increasing by $6.07 million monthly.
During a courtesy meeting on May 23 with Power Division Secretary Farzana Mamtaz, Adani Power CEO SB Khylia urged swift resolution of dues, citing rising bank loan pressures. He was accompanied by Adani Power President (Commercial) M.R. Krishna Rao.
Khylia also raised a January proposal to waive approximately $50 million in surcharge from January to June 2025, expressing concern over BPDB’s lack of response.
National Review Committee Formed
In response to the broader controversy, the government has formed a high-powered national review committee, headed by retired Justice Moinul Islam Chowdhury. The panel is re-evaluating the Adani agreement and seven other large power plant deals signed without open tenders during the previous Awami League government.