Bangladesh has begun clearing outstanding electricity bills to India’s Adani Power, paying $20 million in November 2024 out of its $850 million dues. This follows Adani’s reduced power supply from 1,500MW to 600-700MW, citing overdue payments. Under a 2015 agreement, Adani supplies electricity from its 1,600MW coal-fired plant in Jharkhand. Officials aim to resolve the payment crisis within months despite foreign currency shortages, with Bangladesh’s reserves falling to $20 billion. Meanwhile, power shortages persist, particularly in rural areas, as capacity charges to independent power producers (IPPs) and rental plants weigh heavily on government finances.
The country allocated Tk 360 billion in power subsidies for FY2025, with most funds covering capacity charges. Economists advise renegotiating or scrapping power purchase agreements under the “force majeure clause” to alleviate fiscal pressures. Cumulative debts, including Tk 330 billion in capacity charges by November, highlight challenges linked to costly deals sanctioned by the previous regime, further burdening an already strained economy.
Source for more details:
