India’s Adani Power has told the Bangladesh government that it is open to reviewing the current coal pricing system in their electricity deal — but only if unpaid dues are cleared first.
This was discussed in a virtual meeting held on 23 June between senior officials of Adani Power and the Bangladesh Power Development Board (BPDB), according to government sources.
Big Dispute Over Unpaid Bills
Adani claims that Bangladesh owes them $900 million, but BPDB estimates the amount is actually lower.
“We’re making progress on this issue,” said Power Division Secretary Farzana Mamtaz, adding that part of Adani’s claimed amount includes late payment penalties, which are still being discussed.
She also mentioned that the government hopes to settle the payment within a month, which could open the door to reviewing the pricing formula.
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Adani Offers $50 Million Waiver If Paid Promptly
A BPDB official said Adani has offered to waive a $50 million penalty if Bangladesh makes the payment quickly.
BPDB is currently trying to arrange funds to make a substantial payment within this week.
Bangladesh Questions Coal Pricing Method
Bangladesh has formally raised concerns about how Adani calculates coal prices in the power deal. Critics say the pricing formula increases electricity costs unfairly.
BPDB Chairman Md Rezaul Karim said Adani has agreed to review the concerns after dues are paid.
“We are continuing discussions to resolve the issue,” he added.
Power from Adani Much Costlier Than Local Plants
Bangladesh imports 1,600MW of electricity from Adani’s coal power plant in Jharkhand, India. However, the cost per unit is significantly higher than from local plants.
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Adani’s average cost per unit: Tk14.87
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Payra power plant’s cost per unit: Tk11.83
A review by a technical committee found that Adani’s pricing method is flawed. They tie coal prices to global indexes but don’t apply available discounts. Also, coal is imported from faraway Australia, increasing transport costs. Using closer suppliers like China could reduce the price, experts say.
Adani Warns of Power Disruption
In a letter dated 17 June, Adani’s Managing Director Anil Sardana wrote to Finance Adviser Salehuddin Ahmed, warning that if Bangladesh does not settle the $900 million soon, the Godda power plant may not be able to continue operations.
The company says delayed payments have forced them to take expensive loans for fuel and maintenance. They are also under pressure from lenders who may withdraw funding.
Payment Pressure on Bangladesh
BPDB currently pays Adani $90–100 million per month, with support from Bangladesh Bank. Payments are made via Bangladesh Krishi Bank.
But the difference in the amount claimed — $900 million by Adani versus $700 million according to BPDB — mostly comes from how coal prices are calculated.
Uncertainty Under Caretaker Government
Although both sides are still talking, a full resolution might take time. Since Bangladesh is under a caretaker government, it has limited authority to renegotiate major deals.
Government officials are now under pressure to settle the matter quickly before it affects electricity supply or creates diplomatic tensions.
Source: TBS
