Adani Group Moves Toward International Arbitration Over Payment Dispute with Bangladesh

Darwin, 04 November-

India’s multinational conglomerate Adani Power has initiated international arbitration proceedings to resolve a payment dispute with Bangladesh Power Development Board (BPDB) over outstanding dues related to electricity supply under a long-term agreement.

The company, led by Indian billionaire Gautam Adani, has been in dispute with the Bangladeshi authorities over unpaid bills from power supplied under a contract signed in 2017.

An Adani Group spokesperson stated:

> “There are differences over certain cost components related to calculation and billing. Both parties have agreed to engage in a dispute resolution process, with the expectation of reaching a prompt, straightforward, and mutually beneficial outcome.”

However, Mohammad Fawzul Kabir Khan, energy adviser to Bangladesh’s interim government, told Reuters that discussions were still ongoing.

> “Once the process concludes, and if necessary, we will proceed to international arbitration,” he said.

Adani Power operates the 1,600-megawatt coal-fired Godda Power Plant in eastern India, which supplies about 10% of Bangladesh’s total electricity demand.

Earlier, Bangladesh’s interim government accused Adani Power of violating its power purchase agreement (PPA) by suspending certain tax benefits granted in India for the Godda project.

According to official data, Bangladesh paid Tk 14.87 per unit for electricity purchased from Adani — significantly higher than the average Tk 9.57 per unit paid to other Indian suppliers.

Last week, Adani Power reported that Bangladesh’s outstanding payments had declined sharply — from nearly $2 billion earlier this year and $900 million in May to the equivalent of just 15 days’ worth of tariffs.

In a statement released Monday, the company reaffirmed its commitment to the contract, saying:

> “Adani Power remains fully dedicated to the power purchase agreement and will continue supporting Bangladesh with reliable, competitive, and high-quality electricity supply.”

Source: Reuters