Adani Power, a company owned by Gautam Adani, received good news as Bangladesh requested the full supply of 1,600 MW of electricity. Due to payment issues and political unrest in Bangladesh, Adani Power was only supplying half of the agreed electricity. Following the recent development, the company’s shares jumped by 4%, reaching ₹511.90.

Power Supply Agreement with Bangladesh

In 2017, under the leadership of then-Prime Minister Sheikh Hasina, Adani Power signed a 25-year electricity supply contract with Bangladesh. The company supplies electricity from its Jharkhand-based power plant, which has two units, each with a capacity of 800 MW dedicated solely to Bangladesh.

Payment Issues and Limited Power Supply

According to Reuters, from October 31, 2024, Adani Power started supplying only half the power due to foreign currency shortages in Bangladesh. Unable to clear outstanding payments, Bangladesh requested a reduction in supply, leading to the shutdown of one unit. The power plant was operating at only 42% capacity.

The Bangladesh Power Development Board (BPDB) was paying $85 million per month to settle dues and requested Adani Power to restart the second unit.

Efforts to Settle Outstanding Payments

BPDB Chairman stated that they are now trying to make higher payments. Currently, BPDB owes Adani Power around $900 million, although BPDB claims the outstanding amount is $650 million.

After recent political changes in Bangladesh, a panel of experts was appointed to review energy deals signed under the previous government led by Sheikh Hasina.

Adani Power has not issued an official statement yet regarding the request to resume full power supply.