In a major development for Bangladesh’s power sector, the Bangladesh Power Development Board (BPDB) has cleared $336 million in overdue payments to Adani Power Limited for electricity supplied up to March 2025.
The payment was made ahead of Adani’s June 30 deadline, which was tied to a conditional waiver of late payment surcharges.
“We cleared the bulk amount to Adani on Tuesday. Now it’s Adani’s turn to review the Power Purchase Agreement (PPA) in line with the government’s request,” said Power Division Secretary Farzana Momtaz in a statement to Just Energy News.
She added that the payment was made possible through recovery of unpaid electricity bills and subsidy support from the Finance Division.
Adani Waives $20 Million in Late Fees
Following the payment, Adani Power confirmed that it has waived $20 million in late payment surcharges.
The waiver was outlined in a letter dated June 23, where Adani stated that the charges would be waived if all dues up to March 2025 were cleared by June 30.
The letter referenced the PPA and Implementation Agreement signed on November 5, 2017, between Adani Power (Jharkhand) Limited (now Adani Power Limited) and the Government of Bangladesh. It was signed by M.R. Krishna Rao, President of Adani Power Limited.
Coal Tariff Dispute Still Unresolved
Despite the financial settlement, a key dispute over coal tariffs between BPDB and Adani remains unresolved. The disagreement concerns the per-unit cost of electricity generated at Adani’s 1,600 MW Jharkhand plant.
During a virtual meeting on Monday, BPDB officials proposed aligning Adani’s coal pricing formula with that used for the 1,320 MW Payra power plant. However, Adani rejected the proposal, citing fixed terms under the existing PPA.
Adani Seeks Capacity Revision
In the same meeting, Adani requested a revision of the plant’s dependable capacity, following a performance test conducted in April 2025. According to the company, the dependable capacity has increased from 1,396 MW to 1,570 MW.
BPDB said any revision would require a supplementary agreement. While no date has been set, both parties agreed to hold a high-level in-person meeting soon to address unresolved issues.
BPDB Chairman Engr. Md. Rezaul Karim confirmed that the board held a review meeting on the ongoing negotiations. “We are awaiting Adani’s response regarding the proposed coal pricing formula,” said a senior BPDB official.
Dispute Over Coal Pricing Methodology
As of May 2025, BPDB estimates its outstanding dues to Adani at around $485 million. Adani, however, claims the figure exceeds $700 million, an inconsistency largely due to differing methods of coal price calculation.
BPDB stated that a review of the coal tariff formula is underway to resolve the discrepancy.
Meanwhile, Power Secretary Farzana Momtaz noted that the visiting International Monetary Fund (IMF) mission has appreciated the government’s ongoing efforts to reform the power sector.