Adani Seeks Payment as Power Dues Dispute with Bangladesh Government Escalates
Dhaka, Feb 8, 2026: An ongoing dispute over unpaid electricity bills between Bangladesh and an Indian power producer has escalated, with the company sending another formal letter urging settlement of outstanding dues while legal proceedings remain underway in Bangladeshi courts.
Company Seeks Immediate Payment
According to sources familiar with the matter, the company has requested the Bangladesh Power Development Board (BPDB) to pay approximately $112.7 million to continue uninterrupted power generation, warning that payment delays are affecting coal imports and could disrupt electricity supply.
Details of the Outstanding Amount
Local media reports said the letter was sent on January 29 by a senior executive of the power producer, stating that total receivables under the power purchase agreement stand at around $572 million. Of this amount, approximately $300 million is reportedly undisputed by BPDB.
Background of the Payment Dispute
During the tenure of the previous government, unpaid dues reportedly rose to nearly $700 million. After the interim administration took office, BPDB cleared part of the arrears and paid electricity bills regularly between June and November last year, reducing the outstanding amount.
Recent Payment Slowdown Raises Concerns
Payments have reportedly declined over the past two months, worsening the situation. The company has asked the interim government, led by Muhammad Yunus, to provide a clear repayment timeline. Delays have also resulted in surcharge additions to the original bills.
BPDB Responds to Payment Concerns
BPDB Chairman Rezaul Karim said lower revenue collection had limited recent payments but confirmed that a repayment plan exists and that payment volumes may increase from March.
2017 Power Supply Agreement
The power purchase agreement was signed in 2017, under which electricity generated from a plant in eastern India was to be supplied exclusively to Bangladesh for 25 years. The agreement provides for the supply of up to 1,600 megawatts of power.
Reduction in Electricity Supply
Following political changes in Bangladesh, electricity supply was reduced by half in October 2024, while outstanding dues continued to rise.
Contract Review and Legal Challenges
Bangladesh has formed a six-member review committee led by a retired High Court judge to examine power sector agreements signed under the previous government. The committee reportedly identified the power deal as financially burdensome, estimating significant annual losses. Legal proceedings related to the agreement are ongoing.
Company’s Response to Review Findings
The power producer has stated that it has not received the review committee’s report and has not been formally contacted by Bangladeshi authorities. It also said that despite substantial unpaid dues, electricity supply to Bangladesh has not been suspended.
