Bangladesh clears Adani arrears, ‘settles’ issues in power purchase agreement

Bangladesh has resolved its payment dispute with India’s Adani Power, clearing overdue bills and removing uncertainty over power supply from the company’s Jharkhand-based plant.

A PTI report citing New Delhi sources reveals that Bangladesh made a record single payment of $437 million in June, settling past arrears, transmission charges, and all issues related to the power purchase agreement (PPA).

Bangladesh now has no pending dues. In addition, it has issued a letter of credit (LC) equivalent to two months’ worth of bills, along with a sovereign guarantee covering all outstanding amounts.

With the financial issues settled, the Bangladesh Power Development Board (BPDB) has formally requested Adani Power to continue supplying electricity from both units of its Jharkhand plant at the contracted rate.