Adani commits to fully restoring the power supply

Adani Power has agreed to fully restore electricity supply from its 1,600 MW power plant in India to Bangladesh within a few days, following a three-month reduction, but has declined Dhaka's request for discounts and tax concessions, according to two sources cited by Reuters.  

The company, owned by billionaire Gautam Adani, had cut supply to Bangladesh by half on October 31 due to delayed payments amid the country's foreign exchange crisis. As a result, one of the plant's two equal-sized units was shut down on November 1, with Bangladesh later requesting only partial supply due to lower winter demand and ongoing payment issues.  

With summer approaching and at the request of the Bangladesh Power Development Board (BPDB), Adani Power has now agreed to resume full supply by next week, according to the sources, who spoke anonymously as they were not authorized to discuss the matter publicly. The eastern India-based plant supplies power exclusively to Bangladesh.  

However, Adani Power has refused BPDB’s request for financial relief, including discounts and tax benefits potentially worth millions of dollars. The two sides held a virtual meeting on Tuesday, with further discussions expected.  

"They are unwilling to make any concessions, not even for $1 million," one source said, referring to Adani Power. "We have not received any discounts. While we seek a mutual understanding, they are strictly adhering to the power purchase agreement."  

BPDB Chairperson Md. Rezaul Karim did not respond to questions about the disagreements but previously told Reuters that there were no major issues with Adani and that full power supply would resume. He also mentioned efforts to increase payments beyond $85 million per month.  

An Adani Power spokesperson did not immediately comment. In response to an earlier Reuters report, the company stated that power dispatch depends on the needs of procurers, which fluctuate over time.  

In December, an Adani source claimed BPDB owed around $900 million, while Karim estimated the amount at approximately $650 million. The ongoing dispute centers on how power tariffs are calculated.  

BPDB had previously written to Adani Power seeking tax exemptions worth millions of dollars and the reinstatement of a discount program that ended in May.