Bangladesh has made its single largest payment of USD 437 million to Adani Power in June, clearing all outstanding, official sources confirmed.

The payment, which includes pending invoices, carrying costs, and issues tied to the power purchase agreement (PPA), marks a significant improvement in Bangladesh’s commitment to energy procurement. 

Adani Power supplies electricity from its 1,600-megawatt (MW) coal-fired plant in Godda, Jharkhand, which currently meets around 10 percent of Bangladesh's total power demand.

Sources familiar with the matter said Bangladesh is now regular in its payments, providing additional security in the form of Letters of Credit (LCs) covering two months of billing, along with a sovereign guarantee for all dues.

“With the resolution of outstanding payments, the Bangladesh Power Development Board (BPDB) has requested Adani Power to supply electricity from both units in line with its original schedule,” one source said.

The improved financial standing is expected to boost Adani Power’s credit rating. Lenders are reportedly confident that Adani Power Ltd (APL) will soon be upgraded from an AA to AA+ rating, which would reduce its cost of borrowing and enhance financial stability.

The power supply from the Godda plant had previously been cut by 50 percent in November 2024 after Bangladesh defaulted on its obligations under the 2017 bilateral agreement. 

The agreement committed Adani Power to supply the full output of the plant to Bangladesh for 25 years.

Supply was only restored in full in March 2025, after Bangladesh resumed consistent monthly payments of USD 90–100 million, gradually covering the outstanding liabilities. The USD 437 million payment in June cleared all remaining dues, sources confirmed.

Amid economic strain triggered by the Russia-Ukraine conflict, rising import costs, and political turmoil—including the ousting of former Prime Minister Sheikh Hasina in August 2024—Bangladesh had struggled to meet its external payment obligations. 

Foreign currency reserves were depleted, and student-led protests led to widespread unrest.

The current interim government has approached the International Monetary Fund (IMF) for an additional USD 3 billion in support, on top of an existing USD 4.7 billion bailout package.

Despite earlier controversies surrounding the transparency of deals signed during the Hasina era, including the Adani Power contract, the interim administration has not reversed the agreement. 

Investigations into the PPA reportedly found no adverse findings, and the Godda plant is now considered well integrated into Bangladesh’s national power system.

The Godda power plant was previously operated under a separate Adani subsidiary, which has since been merged with the parent company, further strengthening operational and financial efficiency.

In addition to Adani Power, Bangladesh also imports electricity from other Indian state-run firms, including NTPC Ltd and PTC India Ltd.

MSK/SMS