Adani restores full power supply to Bangladesh after months of disputes

Bangladesh experienced a significant disruption in its electricity supply due to unpaid dues to Adani Power, leading to a drastic reduction in electricity provided by the Indian conglomerate. On October 31, 2024, Adani halved the electricity supply to Bangladesh to 800 MW from its coal-powered plant in Jharkhand after the country defaulted on payments while facing a foreign exchange crisis. This situation forced Bangladesh to request Adani to continue with lower power amounts, citing anticipated lower demand during the winter months. Payment disputes have long plagued the relationship between the two, with claims of outstanding dues reported to exceed $850 million at their peak. Following these circumstances, power supply was restored nearly two weeks ago, on the understanding that Bangladesh would make regular payments for the electricity used. The chairman of the Bangladesh Power Development Board confirmed that the country would maintain payments, as this restored supply was crucial for stabilizing their national grid, particularly as electricity demands surge during the summer. The power supply deal between Adani and Bangladesh was made in 2017, during the administration of then Prime Minister Sheikh Hasina, who had maintained a cooperative relationship with India. Following her ousting in August 2024 amid public protests, the interim government led by Muhammad Yunus is now examining this and other energy contracts signed by Hasina, which have come under scrutiny as critics argue that the agreement is overly beneficial to Adani at the expense of Bangladeshi consumers. Now that the supply has resumed, it is aimed at alleviating pressure on Bangladesh's grid and preventing upcoming blackouts.