Adani Group Preparing to Seek International Arbitration Against Bangladesh
Indian multinational conglomerate Adani Power, a subsidiary of the Adani Group, has announced that it has initiated international arbitration proceedings to resolve a dispute with Bangladesh regarding outstanding payments related to power supply.
The company, led by Indian business tycoon Gautam Adani, is engaged in a disagreement with the Bangladesh Power Development Board (BPDB) over unpaid dues for electricity supplied under a 2017 power purchase agreement.
An Adani Group spokesperson said, “There are differences over the calculation and billing of certain cost components. Both parties have agreed to initiate the dispute resolution process and expect a quick, simple, and mutually beneficial outcome.”
However, Bangladesh’s energy adviser Mohammad Faozul Kabir Khan told Reuters that discussions are still ongoing. He said, “Once this process concludes, we will proceed to international arbitration if necessary.”
Adani Power supplies electricity to Bangladesh from its 1,600-megawatt coal-based Godda Power Plant located in eastern India, which accounts for nearly one-tenth of Bangladesh’s total power demand.
Earlier, the caretaker government had accused Adani of breaching the power purchase agreement by suspending tax benefits granted in India for the Godda plant.
During the last fiscal year, Bangladesh paid Tk 14.87 per unit of electricity purchased from Adani — higher than the average Tk 9.57 per unit paid to other Indian suppliers.
Last week, Adani Power stated that its outstanding receivables from Bangladesh had fallen significantly. While dues stood at around USD 900 million in May and nearly USD 2 billion earlier this year, they have now dropped to an amount equivalent to 15 days of tariff payments.
On Monday, the company further said, “Adani Power remains fully committed to its power purchase agreement and will continue to support Bangladesh with reliable, competitive, and high-quality electricity supply.”
