Adani Seeks Payment Plan as PDB's Arrears Reach $845M

In a letter dated January 6, Adani sought urgent resolution of the growing arrears and discussions on future supply arrangements. The letter was addressed to Finance Adviser Dr. Salehuddin Ahmed and Power and Energy Adviser M Fouzul Kabir Khan. Confirming the letter's receipt, Kabir Khan stated, "This is a routine issue, as we owe them money. They have requested settlement of dues and further discussions."

The $1.7 billion Godda power plant, a symbol of energy cooperation between Bangladesh and India, was expected to alleviate Bangladesh's power shortages. However, it has become a source of financial and diplomatic strain. The letter revealed that since the plant began supplying power in 2023, the Bangladesh Power Development Board (PDB) has failed to fully settle its invoices, resulting in a mounting debt. While recent payments from PDB have improved, they only cover current bills, leaving the outstanding amount of $845 million, of which $771 million is overdue, unresolved.

The situation has been complicated by disputes between PDB and Adani Power, with "claims and counterclaims" noted in the letter. Adani is urging the Bangladesh government to arrange a meeting in Dhaka to resolve these issues.

As Ramadan and the Boro rice season approach, demand for power is expected to surge, increasing pressure on the government to clear outstanding dues to both local and foreign power suppliers like Adani. Local independent power producers (IPPs) have also called on the government to settle at least half of their overdue bills within 10 days to prevent potential blackouts during these critical periods.

The Bangladesh Independent Power Producers’ Association (BIPPA) highlighted that around Tk18,000 crore in bills remain unpaid, with delays exceeding six months, far beyond the contractually agreed 45-day limit. BIPPA President KM Rezaul Hasanat emphasized the urgency of clearing at least Tk4,500 crore by mid-January to ensure timely fuel oil imports for power generation.

In addition, Petrobangla has warned that delays in paying around $470 million in dues to foreign LNG suppliers could disrupt imports and impact energy supply, with potential penalties for late payments. However, Bangladesh Petroleum Corporation (BPC) has clarified that although it owes $70 million for fuel oil imports, these are not considered arrears.

Energy Adviser Fouzul Kabir Khan acknowledged the overdue payments to IPPs and stated that discussions are underway to address the issue.