India’s Adani Power Limited (APL) has requested the intervention of Bangladesh’s Finance Adviser to accelerate the resolution of its outstanding dues, which exceed US$900 million.

Anil Sardana, the Managing Director of the group, recently made this request in a letter addressed to Finance Adviser Dr. Salehuddin Ahmed, as reported by officials.

According to sources, the state-run Bangladesh Power Development Board (BPDB) has owed these dues as outstanding bills to the Indian company since May of last year.

Additionally, APL has urged the relevant authorities to allocate the necessary funds for Bangladesh Krishi Bank (BKB) or any other authorized bank to ensure the prompt settlement of its outstanding dues.

The Bangladesh Bank (BB) has already given the green light for the state-owned Krishi Bank to process payments for the dues owed to India’s Adani Power (Jharkhand) Limited.

In response to inquiries, BPDB Chairman Engineer Md Rezaul Karim stated: “We are working to settle the outstanding dues owed to Adani Power Limited.”

However, he noted that the state-owned power entity may not be able to clear all pending bills in a single transaction.

He indicated that a new development regarding this matter is anticipated within a day or two.

In his request letter, the MD of APL stated: “We have been consistently informed that due to a lack of sufficient foreign exchange, outstanding dues exceeding US$900 million by the end of May 2025 have accumulated, placing us in significant hardship and embarrassment with our lenders.”

He assured that Bangladesh would receive a consistent power supply along with other dependable services.

An official stated that Adani asserts approximately $900 million in power bills, including interest, remains unpaid, while the BPDB estimates this figure to be around $700 million.

Since April 2023, under a 2015 agreement, the APL has been delivering 1496-megawatt (MW) power to the Bangladesh Power Development Board (BPDB) from its dedicated Ultra Super Critical Thermal Power Project located in Godda, Jharkhand, India (Godda TPP) as part of a long-term Power Purchase Agreement (PPA).

This plant has become a significant source of electricity for northern Bangladesh.

The APL has consistently supplied power to the BPDB, while simultaneously requesting the BPDB to settle its substantial overdue payments related to the power supply under the PPA, as mentioned in the letter.

In its correspondence, the APL indicated that the BPDB’s delayed and insufficient payments have severely impacted its financial stability, leading to significant challenges in servicing debts to its lenders. The letter noted that working capital was being sustained through expensive borrowings to acquire fuel and spare parts.

The relevant financial institutions have threatened to withdraw their capital support to APL due to BPDB’s ongoing payment defaults, the letter further stated.

In addition to the considerable outstanding dues, the BPDB is handling payments for monthly bills ranging from approximately U$ 90-100 million for regular power supplies.

The BB has allocated US dollars to all banks, including Bangladesh Krishi Bank, which serves as the nodal bank for the BPDB.

So far, the company has received payments of U$10-20 million per month, while its regular monthly bill amounts to about U$80 million.