India’s Adani Group has warned that delays in payments from Bangladesh could threaten electricity supplies 1600MW Jharkhand Ultra Super Critical Thermal Power Plant, as it seeks urgent government intervention over outstanding dues of nearly $688 million.
In a letter dated 17 April, Pranav Adani, managing director of the group’s agro, oil and gas division, wrote to Power and Energy Minister, Iqbal Hasan Mahmud, requesting action to resolve mounting arrears owed by the Bangladesh Power Development Board (BPDB).
According to the letter, total unpaid bills have reached $688 million, including $393 million described as undisputed — equivalent to roughly four to five months of electricity supply.
The group has been exporting power to Bangladesh from its 1,600MW coal-fired plant in Godda, eastern India, under a long-term power purchase agreement that began in April 2023.
Adani said it has continued supplying electricity “in good faith” despite irregular payments, but warned that sustained delays are straining cash flow and could affect operations.
“In the absence of timely settlement, there remains a risk of partial or, in the worst case, complete disruption of power supply,” the letter said.
The company added that uninterrupted supply is critical for Bangladesh’s industrial growth, particularly in the north-western Rajshahi region, and called for immediate clearance of dues alongside a more predictable payment mechanism.
Earlier Appeal to Finance Minister
In separate correspondence dated 26 March, Pranav Adani also urged intervention from senior political figures, including Amir Khasru Mahmud Chowdhury, over what the company described as “alarming” levels of overdue payments.
At that point, Adani put total arrears at $669 million, including $382 million undisputed. The company warned that failure to release funds promptly could force reductions in output, affecting the continuity of supply.
Coal pricing dispute deepens
Part of the disagreement stems from a dispute over coal pricing benchmarks used in billing. Changes introduced by Indonesia to its coal indexation system in 2023 have led to differing interpretations between Adani and BPDB.
While BPDB has used a mix of indices — including HBA2 and international benchmarks — Adani has maintained that invoices should follow the original pricing formula set out in the power purchase agreement (PPA).
The dispute has escalated to arbitration in Singapore, according to officials familiar with the matter.