Adani Power Limited has warned it will suspend electricity supply to Bangladesh from November 11 if outstanding dues are not cleared by November 10.
In a letter dated October 31 to Bangladesh Power Development Board (BPDB), Vice-Chairman Avinash Anurag said BPDB has yet to pay $496 million, including $262 million in acknowledged but unpaid bills.
"If all outstanding payments are not settled by November 10, we will be compelled to suspend power supply from November 11," the letter stated.
Adani noted that repeated communications, including a letter on October 27, failed to resolve the issue. Under clauses 13.2(i)(i) and (ii) of the 2017 Power Purchase Agreement (PPA), the company reserves the right to halt supply, while still remaining entitled to capacity payments.
Earlier, on September 27, Adani Group Chairman Gautam Adani wrote to Chief Adviser Dr Muhammad Yunus urging payment of $464 million in dues. Partial payments have been made between June and September, but a substantial amount remains unpaid.
Sources said CEO-level talks between Adani and BPDB showed no flexibility from the Indian company, which refused to renegotiate the PPA. "We sat with Adani Power several times over the past few months but made no progress in addressing our concerns," BPDB Chairman Md Rezau Karim told the media.
The dispute involves the 25-year PPA signed in 2017 for electricity from Adani's 1,600MW Godda coal plant in India's Jharkhand state. BPDB has raised issues over high tariffs linked to imported coal, excessive late-payment surcharges, and unpassed tax exemptions granted in India.
Adani has nominated a mediator, and BPDB has been asked to do the same, as a preliminary step before approaching the Singapore International Arbitration Centre (SIAC) to form a dispute board. If mediator-level talks fail, full legal arbitration will follow.
Meanwhile, Power, Energy, and Mineral Resources Division Adviser Fouzul said the government is fully prepared to pursue legal action to safeguard national interest.
