Bangladesh reduces Adani Power dues with $384 million payment, leaves $500 mn in dues unsettled

Bangladesh has significantly reduced its outstanding dues to Adani Power by making a $384 million payment in June under a power supply agreement. This payment reduces the total outstanding amount from the ‘admitted’ claims till March 31 and is part of the $437 million committed by the end of the month. With this payment, Bangladesh has now settled nearly $1.5 billion of the approximately $2 billion total billed amount, leaving around $500 million still as ‘claimed’ dues.

The 2017 power supply agreement between Bangladesh and Adani Power has faced scrutiny, especially following economic challenges exacerbated by the Russia-Ukraine conflict and domestic political instability. This instability led to the ousting of Prime Minister Sheikh Hasina, further straining the country’s finances. Due to these financial difficulties, Bangladesh struggled to meet its payment obligations, prompting Adani Power to halve the electricity supply in November 2024. However, as Bangladesh began to clear its monthly dues, full supplies resumed in March 2025.

Adani Power has reportedly agreed to waive late payment surcharges for the period from January to June 2025, amounting to approximately $20 million, provided Bangladesh adheres to its payment commitments. Sources indicate that the difference in ‘claimed’ and ‘admitted’ dues arises from ongoing discussions between the two parties regarding coal cost and plant capacity calculations. An Adani Power spokesperson confirmed the payments but did not share details on “claimed” and “agreed” dues, stating these discussions are private.

Bangladesh has been facing challenges in generating sufficient foreign currency revenues necessary to cover essential imports such as electricity, coal, and oil. The country’s foreign reserves have declined, leading to increased power shortages in rural areas and further political unrest. This unrest led to the interim government’s request for additional financial assistance from the IMF, on top of the existing $4.7 billion bailout package. The interim administration, led by Nobel laureate Muhammad Yunus, has labeled existing agreements, including the Adani power deal, as opaque and has initiated the formation of a high-level committee to re-examine these deals.

Besides Adani Power, other Indian firms such as NTPC and PTC India also provide electricity to Bangladesh. The continuation of these power deals is crucial for Bangladesh to maintain a stable power supply, especially in rural areas. As the country navigates its financial and political landscape, the resolution of these dues and the terms of the power agreements will remain a focal point for the interim government and international observers. 

The situation underscores the complexities involved in international power agreements, especially in the context of fluctuating economic conditions and political changes. The involvement of international bodies like the IMF highlights the global dimension of such financial and energy challenges. Additionally, the ongoing discussions and potential adjustments to the agreements reflect the dynamic nature of international trade and finance, where adaptability and negotiation are key to maintaining stability and progress.

Adani Power performance

Adani Power shares have staged a robust rally this week, soaring 13.8% to hit a high of Rs 605 on the BSE today, fuelled by strong trading volumes.

On the technical front, the stock is trading comfortably above key daily exponential moving averages (EMAs). Trendlyne data indicates the 5-day EMA stands at 558.3, the 10-day EMA at 555.7, and the 20-day EMA at 555.0. Longer-term averages show the 50-day EMA at 548.3, the 100-day EMA at 543.3, and the 200-day EMA at 548.6.

The stock’s Relative Strength Index (RSI) is hovering around 59, suggesting neutral momentum since readings below 30 indicate oversold conditions and those above 70 point to overbought levels.

While Adani Power shares have declined 15.64% over the past year, they’ve demonstrated a solid rebound in recent months. The stock has climbed 14.50% so far this year, with a six-month gain of 19.03%. Over the last three months, it’s up 16.12%, and in the past month alone, it has advanced 9.14%.

Shares of Adani Power closed at Rs 584.25 on Friday, up by 1.11%.