Indian Adani Power (Jharkhand) Ltd (APJL) has issued a warning to the Bangladesh Power Development Board (BPDB), urging the settlement of an overdue payment of US $845 million by June 2025 to avoid a late payment surcharge stipulated in their Power Purchase Agreement (PPA).
The late payment surcharge is estimated at USD $50 million.
In an official letter sent on Sunday, Adani Power highlighted the overdue bills and offered to waive the late payment surcharge for the period between January and June 2025 if BPDB clears its monthly invoices on time and settles outstanding dues as of December 2024 by June 30, 2025.
The payment dispute has already caused APJL to suspend one of its 1,600 MW coal-fired units in Jharkhand.
In the letter, M.R. Krishna Rao urged BPDB to accept the proposed settlement and clear the outstanding dues under the outlined terms, emphasizing that it would serve the mutual interests of both BPDB and APJL.
“APJL proposes to waive the Late Payment Surcharge applicable for the period January 2025 to June 2025 on the prevailing overdue amounts if the BPDB pays the monthly invoices raised during this period within the due date and clears the outstanding amount as of December 2024 on or before June 30, 2025,” wrote M.R. Krishna Rao, President and member of the Joint Coordination Committee of Adani Power, in a letter to the BPDB chairman on Thursday.
Adani Power stated that the overdue payments cover the period from June 8, 2023, to January 6, 2025.
Company officials also confirmed that a meeting between Adani Power and BPDB took place on January 9, 2025, to address the payment concerns.
BPDB chairman Rezaul Karim expressed optimism about settling the dues by June 2025, telling Just Energy News that the Power Division has held multiple discussions with the Finance Division to resolve the issue.
