Adani’s Power Supply to Bangladesh Increases Amid Diplomatic Tensions

Despite strained relations between Dhaka and New Delhi, visa complications, and security concerns, India’s industrial conglomerate Adani Group has increased its electricity supply to Bangladesh. Power exports from Adani Power’s coal-based Godda power plant in Jharkhand, owned by Indian billionaire Gautam Adani, to Bangladesh have risen significantly in recent months.

News agency Reuters, citing an analysis of official data from both countries, reported that electricity supply from the Godda power plant to Bangladesh increased by nearly 38 percent in the final quarter of 2025 (October–December) compared to the same period the previous year. During these three months, the Adani Group supplied approximately 2.25 billion kilowatt-hours of electricity to Bangladesh.

Throughout 2025, Adani Group’s total electricity supply reached a record 8.63 billion kilowatt-hours, accounting for about 8.2 percent of Bangladesh’s total electricity supply. According to Reuters’ calculations, India’s share in Bangladesh’s power sector stood at 12 percent in 2024, which rose to 15.6 percent in 2025. In just the first 27 days of January this year, the Adani Group alone met nearly 10 percent of Bangladesh’s total electricity demand.

This surge in electricity imports comes at a time when Bangladesh is facing a severe natural gas shortage. Due to declining domestic gas production and infrastructural constraints, LNG-based power generation has dropped to a record low of 42.6 percent. Over the past decade, nearly two-thirds of the country’s total power generation depended on gas.

To address the gas crisis, the government is increasing its reliance on coal-based power plants and electricity imports. Bangladesh Power Development Board (BPDB) Chairman Rezaul Karim told Reuters that the country’s electricity demand could rise by 6 to 7 percent in 2026. To meet this demand, coal imports will be increased further this year.

Notably, Bangladesh’s coal imports rose by 35 percent in 2025 compared to the previous year, reaching a record 17.3 million metric tons. The Adani Group began supplying electricity to Bangladesh in early 2023.

However, despite the increased power supply, controversy surrounding the contract with Adani has not subsided. A national review committee formed by the interim government has alleged “abnormal irregularities” in the Adani power agreement and claimed that prices are nearly 50 percent higher than market rates. Nevertheless, the electricity is currently considered indispensable for maintaining grid stability.

Energy expert Professor Ijaz Hossain said, “Due to the gas shortage, Adani’s coal-based electricity is still relatively cheaper than operating expensive oil-based power plants.”