Adani agrees to resume full electricity supply to Bangladesh

Gautam Adani's Adani Power has agreed to fully restore electricity supply from its 1,600 MW power plant in eastern India to Bangladesh within the next few days, ending a three-month gap. 

However, the company has rejected Dhaka’s requests for discounts and tax benefits, according indian media.

On October 31, Adani Power halved its electricity supply to Bangladesh due to delayed payments amid the country's foreign exchange shortage crisis. Consequently, one of the two equal-sized units at the plant was shut down on November 1. 

At the time, Bangladesh Power Development Board (BPDB) requested that only half the power be supplied, citing lower winter demand and ongoing payment issues.

With summer demand approaching and upon BPDB's renewed request, Adani Power has now committed to resuming full supplies by next week. Notably, this power plant exclusively serves Bangladesh, making it a critical component of the nation's energy imports.

Despite agreeing to resume full supply, Adani Power has declined several demands from BPDB, including concessions potentially worth millions of dollars. These include requests for tax benefits and the reinstatement of a discount program that operated for a year until May. 

The two sides held a virtual meeting on Tuesday to discuss these matters, with further discussions expected. One source commented, "They don’t want to give up on anything, even $1 million." Adani Power insists on adhering strictly to the terms outlined in the power purchase agreement, leaving little room for negotiation.

Tensions persist over outstanding payments. In December, an Adani representative claimed BPDB owed approximately $900 million, whereas BPDB Chairperson Md Rezaul Karim contested the figure, stating the debt stood closer to $650 million. The discrepancy centres around disagreements regarding tariff calculations.