Bangladesh has paid $384 million to Adani Power, a division of the Adani Group, in a major step toward resolving its outstanding power sector liabilities. This payment settles a significant amount of the debt associated with electricity provided by Adani’s Godda Power Plant in India. In order to stabilize power supply agreements and preserve ties with one of its most important energy suppliers, the transaction is an important step.
Mounting Dues and Power Supply Concerns:
The power sector in Bangladesh has faced considerable pressure in recent months due to mounting financial obligations to international suppliers. Adani Power, which operates the 1,600 MW Godda Ultra Supercritical Thermal Power Plant in Jharkhand, India, has been a major supplier of electricity to Bangladesh since the commissioning of the plant’s first unit in April 2023. The second unit began operations in June 2023, making Adani’s Godda facility a critical contributor to Bangladesh’s national grid.
However, as the country’s foreign exchange reserves came under strain, Bangladesh Power Development Board (BPDB) struggled to keep up with payments to several foreign power producers, including Adani. By May 2025, Bangladesh’s outstanding dues to Adani Power had reached approximately $500 million, raising concerns about the continuity of electricity supply and the potential for contractual disputes.
The $384 Million Payment:
Bangladesh has finally settled a significant amount of the outstanding debt by paying Adani Power $384 million. This payment, which was made in US dollars, is expected to pay for most of the unpaid bills for power that has been provided over the past few months, officials said. The payment follows high-level talks between Adani Group personnel and Bangladeshi authorities to maintain the dependability of cross-border electricity flows.
This financial settlement is seen as essential for maintaining uninterrupted power supply from Adani’s Godda plant, which currently exports around 1,400 MW of electricity to Bangladesh. The payment also demonstrates Bangladesh’s commitment to honoring its international contracts, a key factor in retaining investor confidence and ensuring future energy security.
Officials from the BPDB have indicated that the remaining dues, estimated at around $116 million, will be cleared in the coming months as the country’s foreign exchange position improves. The government has prioritized payments to critical suppliers like Adani to avoid any disruption in power imports, which are vital for meeting the country’s growing energy needs.
Impact on Power Sector and Bilateral Relations:
The clearing of dues to Adani Power has broader implications for Bangladesh’s power sector and its bilateral relationship with India. The Godda Power Plant is the largest foreign direct investment by an Indian company in Bangladesh’s energy sector, and the smooth functioning of this arrangement is crucial for both sides. For Bangladesh, the electricity imported from Godda helps bridge the gap between domestic generation and rising demand, particularly during peak summer months.
The payment also comes at a time when Bangladesh is seeking to diversify its energy mix and attract further foreign investment into its power sector. By demonstrating its willingness to meet financial obligations, Bangladesh aims to reassure other international suppliers and investors about the stability of its energy market.
For the Adani Group, the settlement reduces financial uncertainty and strengthens its position as a reliable partner in the region. The company has reiterated its commitment to supporting Bangladesh’s energy requirements and has expressed optimism about the long-term prospects of cross-border power trade.
Challenges and Opportunities:
Despite the significant payment, Bangladesh’s power sector continues to face challenges related to foreign currency shortages and rising fuel costs. The government is actively working to bolster its foreign exchange reserves and streamline payment processes to avoid future backlogs. Efforts are also underway to enhance domestic power generation capacity and reduce reliance on imported electricity in the long term.
The recent transaction with Adani Power is expected to serve as a template for settling dues with other foreign suppliers. As Bangladesh deals its energy transition, maintaining transparent and timely financial arrangements will be critical for ensuring energy security and attracting new investments.
The $384 million payment to Adani Power marks a positive development for Bangladesh’s power sector, helping to stabilize electricity imports and reinforce ties with a key regional partner. As the country works to address its broader economic and energy challenges, such decisive actions will be vital in sustaining growth and meeting the needs of its population.
