India's Adani Group has formally called on Bangladesh's interim government to devise a clear payment plan for the $845 million owed by the Bangladesh Power Development Board (PDB) for power supplied from its Godda plant.
In a letter dated 6 January, addressed to Finance Adviser Dr Salehuddin Ahmed and Power and Energy Adviser Fouzul Kabir Khan, Adani Group expressed urgency in resolving the mounting arrears while addressing future supply agreements.
The correspondence underscores a critical situation where, despite recent improvements in PDB's payment patterns, current payments barely cover monthly bills, leaving the staggering outstanding amount of $845 million, with $771 million overdue, untouched.
The $1.7 billion Godda plant, a symbol of Bangladesh-India energy cooperation, now stands at the centre of financial and diplomatic strain.
"Adani has requested an urgent meeting in Dhaka to resolve these financial tensions," said Energy Adviser Fouzul Kabir Khan, acknowledging the outstanding dues and referring to the situation as routine.
The arrears have accumulated since the commencement of power supply in 2023, leading to disputes between PDB and Adani Power (Jharkhand) Limited. These unresolved issues have further complicated the situation, prompting Adani to call for immediate government intervention.
The urgency is amplified as Bangladesh prepares for Ramadan and the Boro rice season, periods of high power demand.
Local independent power producers have also pressed the government to clear substantial dues to avoid blackouts during these critical periods.
During a recent meeting, the Bangladesh Independent Power Producers' Association highlighted the pressing need for clearing half of the outstanding Tk18,000 crore within 10 days.
Energy Adviser Fouzul Kabir assured discussions with IPPs to address the delayed payments.
Meanwhile, Petrobangla has warned of potential disruptions in LNG imports if approximately $470 million in due payments are not settled promptly.
A similar caution was issued by the Bangladesh Petroleum Corporation regarding its $70 million debt for fuel oil imports, although these are not considered arrears.
The looming payment crises across multiple sectors underscore the urgent need for strategic financial resolutions to ensure uninterrupted energy supplies and maintain diplomatic and economic stability between Bangladesh and its energy partners.
