Power Struggle: Bangladesh Halves Adani Power Imports Amid Payment Disputes

Bangladesh has reduced its power imports from India's Adani Power by half due to decreasing winter demand and unresolved payment disputes. Despite halved deliveries, Adani ensures continued supplies but cites financial strain due to outstanding dues as Bangladesh navigates its foreign exchange challenges.

In response to falling winter demand and ongoing payment disputes, Bangladesh has cut its power imports from India's Adani Power by 50%. This decision comes as the nation grapples with a pressing foreign exchange shortage, leading to substantial unpaid dues.

Adani Power, whose founder has been implicated in a bribery scandal, reduced power supply to Bangladesh on October 31 due to payment delays. Nevertheless, Bangladesh has directed Adani to maintain deliveries at half capacity, while committing to settle existing debts.

Despite operational challenges, Adani Power remains in discussions with Bangladeshi officials to ensure payment and uphold contractual commitments. With mounting dues now at $900 million, the cost of power supply has become unsustainable, intensifying pressure on Bangladesh to renegotiate prices.

(With inputs from agencies.)