Adani Power Limited (APL) has issued a final reminder to the Bangladesh Power Development Board (BPDB), warning that it may suspend electricity supply to Bangladesh from November 11 if outstanding payments under the Power Purchase Agreement (PPA) are not cleared within the next few days.
In its latest communication with BPDB chairman on October 31, 2025, APL vice chairman Avinash Anurag said BPDB had failed to settle dues amounting to USD 496 million, of which USD 262 million are “undisputed and pending as per BPDB’s own admission.”
The company said the payments were long overdue despite “continuous follow-ups” and multiple reminders, including its letter dated October 27, 2025.
Citing Sections 13.2(i)(i) and (ii) of the PPA signed on November 5, 2017, Adani Power stated that BPDB’s failure to clear the outstanding amounts gives the company the right to suspend power supplies.
“If all the overdue amounts are not cleared by November 10, 2025, we will be left with no option but to suspend power supply from November 11, 2025,” the letter warned.
APL also noted that under the contract, it would remain entitled to receive capacity payments based on the dependable capacity immediately prior to suspension, even if power delivery is halted.
The company added that the notice was issued “without prejudice to our rights and contentions under the PPA, Implementation Agreement, and applicable law.”
Earlier, Gautam Adani, chairman of the Adani Group, has urged Bangladesh to clear outstanding dues of US$464 million, citing growing concern among lenders and stakeholders over the prolonged delay in payments.
In a letter dated September 27, 2025, addressed to Chief Adviser Prof. Dr. Mohammad Yunus, Adani acknowledged that Bangladesh made partial payments between June and September 2025, which “tremendously helped to partially reduce the outstanding balance and mitigate hardships in managing fuel and spare-parts sourcing.”
However, he emphasised that “a significant balance of approximately $464 million remains outstanding.” The dues relate to power supplied from Adani Power’s 1,496 MW Godda Thermal Power Plant in Jharkhand, which exports electricity to Bangladesh under a long-term contract.
Adani noted that during a meeting on June 23, 2025, officials of the Bangladesh Power Development Board (BPDB) had assured the company that all outstanding amounts, including Late Payment Surcharges (LPS), would be settled by September 30.
But, he added, “no concrete schedule nor any definitive plan has been provided” despite the expiry of that deadline.
The letter urged the Chief Adviser to “facilitate the prompt settlement” of the receivable amount to avoid further strain on operations and financing.
According to reliable sources in the Power Division, the Bangladesh Power Development Board (BPDB) is working in line with directives issued by the government-formed National Review Committee on Power Purchase Agreements (PPA).
On Sunday, the committee, led by Justice Moinul Islam, disclosed its initial findings on the PPA with Adani Power. The preliminary report, titled “Basic Governance Failure and Review of Anomalies in the Approval Process on Adani,” has been described as interim, with the final report expected by mid-January 2026.
The committee is also monitoring the ongoing operations of the power plant, which is connected through a dedicated transmission line.
Earlier, on October 17, 2025, The Indian Express reported that the Indian government had granted approval to Adani Power Ltd to install an overhead transmission line to connect its Godda Ultra Super Critical Power Plant with the Indian grid through a Line-in Line-out (LILO) arrangement on the Kahalgaon A–Maithon B 400 kV line. The Godda plant currently supplies electricity to Bangladesh.
Officials concerned said Adani Power Ltd (APL) signed the PPA to supply dedicated electricity to Bangladesh, which has contributed to higher tariffs. They also noted that obtaining central approval in India to install the transmission line without BPDB’s consent constitutes a breach of the PPA.
APL Urges BPDB to Renew Expired Letter of Credit
Adani Power Limited (APL), however, has called on the Bangladesh Power Development Board (BPDB) to immediately renew a Letter of Credit (LC) issued under the Power Purchase Agreement (PPA) signed on November 5, 2017, warning that continued delay could constitute a contractual default.
In a series of letters dated July 18, October 16, and October 27, 2025, APL reminded BPDB that the LC (No. 049924010349), issued by Bangladesh Krishi Bank, expired on October 30, 2025, and had not yet been renewed as required under Section 13.2 of the PPA.
Under the terms of the agreement, BPDB is obligated to ensure annual renewal of the LC at least three months before its expiry, with confirmation from the issuing bank for a further one-year period. APL noted that non-renewal would trigger a “BPDB Event of Default” under Section 4.3(g) of the PPA, entitling the company to issue a formal notice of default and pursue remedies under the contract.
APL’s letter emphasized that the communication was made “without prejudice to all our rights available under the PPA and law.”
The request comes amid ongoing tensions between BPDB and APL over implementation of the PPA, which governs electricity supply from Adani’s Jharkhand-based power plant to Bangladesh.