Power Play: Adani Reinstates Electricity to Bangladesh Amid Economic Struggles

Adani has successfully restored full electricity supply to Bangladesh after a four-month reduction due to unpaid dues that accumulated over time. The company, which runs a coal-powered plant in Jharkhand, India, had initially cut the power supply by half starting on October 31 when Bangladesh failed to meet payment obligations, a situation exacerbated by the country’s ongoing economic challenges. Currently, Bangladesh is managing to make regular payments to Adani, as confirmed by Rezaul Karim, the chairman of the Bangladesh Power Development Board (BPDB).

Dues owed by Bangladesh reportedly exceeded $850 million but have recently decreased to about $800 million, with plans to settle the outstanding balance within six months. The restoration of full power supply, which occurred approximately two weeks prior to the article’s reporting, is set to alleviate stress on Bangladesh’s national grid and prevent potential blackouts during the upcoming high-demand summer months.

Adani’s supply agreement with Bangladesh, a 25-year contract established in 2017 during Sheikh Hasina’s administration, has often been criticized for its perceived benefit to Adani at the expense of local consumers. After Hasina’s government was ousted in August 2024 following nationwide protests, the interim administration led by Nobel Peace Prize laureate Muhammad Yunus initiated a review of major energy contracts, including the one with Adani. The interim government is exploring renegotiation options, claiming the deal is more expensive than other similar agreements and accusing Adani of not adhering to certain tax benefits that were part of the contract, a claim which Adani has denied.