Archive · 4 Nov 2025
Adani Power Pursues International Arbitration Against Bangladesh Over Payment Dispute
Imagine Adani Power is like a company that makes electricity and sells it to another country, Bangladesh.
They had a deal to sell electricity, but now they disagree on how much money Bangladesh owes them.
Adani says Bangladesh owes them a lot of money because of how they figured out the costs.
Bangladesh has paid some money, and the amount owed has gone down, but they still disagree on the bill.
Because they can't agree, Adani Power is going to ask a special international judge, like in arbitration, to help figure out the problem.
They hope this will solve the disagreement fairly.
Adani Power wants to keep selling electricity to Bangladesh because they say it's good and not too expensive.
Adani Power Ltd (APL) will initiate international arbitration to settle a payment dispute with Bangladesh.
The dispute centers on disagreements regarding the calculation and billing of cost elements for electricity supplied under a 2017 pact.
APL supplies power from its 1,600 MW coal-fired Godda plant in Jharkhand, India.
Adani's outstanding dues from Bangladesh have reportedly narrowed to the equivalent of 15 days of tariff, down from $2 billion earlier this year.
Adani Group stated they are confident of a "quick, smooth and mutually beneficial resolution" through the arbitration process.
- Who
- Adani Power Ltd (APL) and the Bangladesh Power Development Board
- What
- Initiating international arbitration over disputed payments for electricity supplied by Adani Power to Bangladesh.
- When
- Adani Power announced its intention on Monday; dispute pertains to a pact signed in 2017 and recent payment issues.
- Where
- The power is supplied from Adani's Godda plant in Jharkhand, India, to Bangladesh.
- Why
- Disagreements over the calculation and billing of certain cost elements in the power supply agreement.
- Company
- Adani Power Ltd (APL)
- Contracting Partner
- Bangladesh Power Development Board
- Disputed Issue
- Calculation and billing of cost elements for power supply
- Power Plant Location
- Godda, Jharkhand, India
- Plant Capacity
- 1,600 megawatt (coal-fired)
- Amount Owed (early 2024)
- $2 billion
- Amount Owed (recent)
- Equivalent of 15 days of tariff (down from $900 million in May)