Bangladesh Government pays $437 Million Dues of Adani Power

Payment Resolution Reaffirms Cross-Border Power Agreement

Adani Power received a payment of $437 million from the Bangladesh government in June 2025, clearing all pending dues for electricity supplied up to March 31. This milestone reinstates financial normalcy to the cross-border power supply arrangement and marks a critical step forward in the Indo-Bangladesh energy partnership. The payment, which includes carrying costs and issues related to the power purchase agreement (PPA), is the largest single remittance Adani Power has received from Bangladesh to date.

Godda Plant to Operate at Full Capacity

Previous monthly payments from Bangladesh ranged between $90 and $100 million, but the recent clearance addresses cumulative arrears. With dues now settled, Bangladesh has instructed Adani Power to run both 800 MW units at the 1,600 MW Godda thermal power plant, aligning with scheduling by the Bangladesh Power Development Board (BPDB). The plant, built under a 2017 agreement, is contracted to supply 100% of its coal-based power output to Bangladesh for a period of 25 years.

Structural and Financial Strengthening

To ensure consistent future payments, Bangladesh has implemented two safeguards:

• A letter of credit (LC) equivalent to two months of billing (approx. $180 million)
• A sovereign guarantee for all dues

This renewed commitment follows a sharp rise in overdue amounts, which reached $900 million as of May 2025, of the total billing of $2 billion until FY25, Adani Power had received $1.2 billion, with $136 million accounted as late payment surcharges.

Operational Integration and Credit Outlook

In tandem with this financial resolution, Adani Power has merged the Godda project previously operated as a standalone subsidiary into its main corporate structure. This operational streamlining, coupled with the cleared dues, may improve the company’s credit rating from AA to AA+, potentially reducing its future cost of capital.

With structural reforms in place and payments regularized, the Godda plant, which supplies nearly 10% of Bangladesh’s total power demand, is now positioned for stable, long-term operations.

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