Bangladesh Slashes Debt in Power Payment to Adani

Bangladesh has taken a significant step in settling its outstanding debt to Adani Power, paying $384 million in June, according to sources familiar with the matter. This payment brings the debt under the 2017 power supply agreement closer to resolution.

The payment, which is part of a commitment to clear $437 million in June, addresses Bangladesh's financial obligations until March 31, reducing Adani's "claimed" dues to approximately $500 million. The Bangladeshi government has faced financial challenges, exacerbated by rising import costs after the Russia-Ukraine conflict and domestic political changes that led to the ouster of Prime Minister Sheikh Hasina.

The power supply deal has been under scrutiny since Hasina's government was replaced by an interim administration in August 2024. The current administration, led by Nobel laureate Muhammad Yunus, has sought to re-examine the power agreement via a high-level committee. Meanwhile, Adani Power has agreed to waive $20 million in late payment charges for the first half of 2023, contingent on continued payment commitments from Bangladesh.

(With inputs from agencies.)