Archive · 4 Nov 2025
Adani Power to Pursue International Arbitration Over Bangladesh Payment Dispute
Imagine Adani Power is like a friend who sells electricity to another friend, Bangladesh.
They had a deal for Bangladesh to pay Adani for the electricity.
Now, they are arguing about how much Bangladesh owes and how Adani calculated the bills.
Adani thinks Bangladesh isn't paying the right amount.
Bangladesh thinks Adani might not have followed all the rules and paid too much.
Because they can't agree, Adani wants to ask a special international referee to help them sort it out.
This referee will listen to both sides and help them find a fair solution.
Even though they are arguing, Adani says they will keep sending the electricity because they want to be a good helper.
Bangladesh's government is also looking into the deal to make sure everything was done correctly.
They hope to resolve this without any further problems.
Adani Power Ltd (APL) will pursue international arbitration to resolve a payment dispute with Bangladesh over electricity supply.
The dispute centers on disagreements regarding the calculation and billing of certain cost elements as per a 2017 pact.
Adani Power states that outstanding dues have narrowed to the equivalent of 15 days' tariff from $900 million in May.
Bangladesh's government has accused Adani of breaching the agreement and is investigating potential corruption.
APL supplies electricity from its 1,600 MW coal-fired Godda power plant in Jharkhand, India.
- Who
- Adani Power Ltd (APL) and the Bangladesh Power Development Board
- What
- Adani Power is initiating international arbitration to resolve a payment dispute regarding electricity supply from its Godda power plant.
- When
- Adani Power announced its intention on Monday, with the dispute stemming from a pact signed in 2017. The dues have narrowed significantly in recent weeks.
- Where
- The dispute concerns power supplied from Adani's Godda power plant in Jharkhand, India, to Bangladesh.
- Why
- Disagreements exist over the calculation and billing of certain cost elements, as well as alleged withholding of tax benefits by Adani.
Adani Power's Stance
Bangladesh's Stance
Dispute Resolution
Adani Power's Stance
Adani Power has agreed to invoke international arbitration to resolve disagreements over cost element calculations and billing for power supplied.
Bangladesh's Stance
Bangladesh's adviser stated that negotiations are ongoing and international arbitration will be pursued if necessary, with the contract potentially being cancelled if corruption is found.
Contract Terms and Costs
Adani Power's Stance
Adani Power maintains it is supplying reliable, cost-competitive, and high-quality power as per the agreement.
Bangladesh's Stance
Bangladesh has accused Adani of breaching the agreement by withholding tax benefits and has paid a higher tariff per unit compared to other Indian firms.
- Company
- Adani Power Ltd (APL)
- Disputing Party
- Bangladesh Power Development Board
- Power Plant Location
- Godda, Jharkhand, India
- Plant Capacity
- 1,600 megawatt (coal-fired)
- Pact Signed
- 2017
- Recent Dues Reduction
- Equivalent to 15 days of tariff (down from $900 million in May and $2 billion earlier this year)
- Latest Tariff (FY to June 30, 2024)
- 14.87 taka ($0.12) per unit