Bangladesh has reduced its outstanding dues to Adani Power for electricity supplies by half in the past year with regular payments helping to restore full-capacity power supply from the Godda plant and assuaging concerns over cross-border electricity imports. Market insiders said the government has been paying at a “satisfactory” level and the arrears owed to the conglomerate have fallen to around $400 million from about $900 million last year.
Godda plant back to near full capacity
Adani Power Jharkhand Ltd (APJL) is now supplying around 1,450 MW of electricity from its power plant against its installed generation capacity of 1,496 MW, with both generating units running near peak output in recent days. That is a sharp turnaround from earlier this year, when technical glitches and monsoon-related disruptions in coal handling forced the plant to cut output periodically.
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The Story of Payment Friction
Tensions have flared periodically since the 25-year power purchase agreement was inked in 2017 for the Godda plant. U.S. and European regulators have threatened to cut off supply several times, including at the end of 2024, when dues ballooned to hundreds of millions of dollars. Bangladesh made a large one-time payment of more than $400 million in mid-2025, and backed the arrangement with a letter of credit and a sovereign guarantee to prevent any future defaults. The agreement allows Adani to charge a late-payment surcharge of around 2 percent a month on outstanding bills.
Deal Still Under Scrutiny
Despite the improved payment position, the contract itself remains contentious. A Bangladesh government-appointed committee has previously flagged concerns over inflated tariffs, and calls to renegotiate the power purchase agreement persist. BPDB has sought a revision of the terms governing the Godda imports, though the two sides have yet to reach an agreement. For now, steadier payments have kept the lights on, even as the underlying pricing dispute stays unresolved.
Summary: Bangladesh has significantly reduced its outstanding payment arrears to Adani Power over the past year, bringing the dues down from roughly $900 million to around $400 million. Regular monthly payments have helped restore full-capacity electricity supply from the company’s Godda plant in Jharkhand, marking a marked improvement after years of payment friction.
