Bangladesh Significantly Cuts Outstanding Dues to Adani

Bangladesh has significantly lowered its outstanding dues to India’s Adani Power under a long-term power supply agreement, and the company remains optimistic about recovering the remaining $900 million, according to its Chief Financial Officer Dilip Jha.

As reported by Reuters, Bangladesh faced difficulties meeting payment obligations under the 2017 deal due to rising import costs following the Russia-Ukraine war and political instability at home, including the prime minister’s ouster last August. In response, Adani cut its power supply by half last year. However, Jha noted during a post-earnings call that full supply has since resumed as Bangladesh’s monthly payments have begun to cover some of the arrears.

“We are supplying full power to Bangladesh ... the payment we are receiving now is more than the monthly billing,” he said, expressing confidence that both current and overdue payments will continue. Adani has so far received nearly $1.2 billion of the $2 billion total billed to Bangladesh.