India's Adani cuts electricity supply to Bangladesh: Power officials

The Indian conglomerate Adani has reduced its electricity supply to Bangladesh by half, citing approximately $850 million in unpaid bills, according to power officials on Sunday. Bangladesh is now working to compensate for the shortfall by increasing production from other power plants.

"We’re trying to cover the deficit by operating other plants," stated Rezaul Karim, chairman of the state-owned Bangladesh Power Development Board (BPDB), speaking to AFP on Sunday.

Adani's Godda coal-fired power plant, located in India's Jharkhand state, typically supplies 7-10 percent of Bangladesh’s baseload demand of 13 GW. This $2 billion project, which includes transmission infrastructure, began operations last year. However, recent political shifts in Bangladesh, following an August student-led movement that unseated former leader Sheikh Hasina, have placed new pressure on its government, now addressing the implications of reduced power supply from Adani.

"We’re in discussions with Adani and have informed them that paying the entire amount at once isn’t feasible," Karim added. "But we’re working to increase our payment amounts gradually."

In October, Bangladesh paid $97 million to Adani, a sum higher than in the previous three months, Karim said. Demand in Bangladesh typically decreases in November with cooler weather, following months of high temperatures where energy demand spikes due to air conditioning.

On Friday, Adani’s Godda plant supplied 724 MW out of its 1,496 MW capacity, leaving Bangladesh with a shortfall of approximately 1,680 MW. Bangladesh also imports an additional 1,160 MW from India’s West Bengal and Tripura states.