Adani Group has reportedly issued a warning to Bangladesh’s interim government, led by Nobel laureate Muhammad Yunus, over an unpaid debt of $500 million from a major power project.
The situation, described by Adani as “unsustainable,” is becoming a growing challenge for Yunus’s administration, which took over after the ousting of former Prime Minister Sheikh Hasina, according to a report by the Financial Times.
Yunus’s government has criticised several costly infrastructure deals made under Hasina’s leadership, including a contentious agreement with Adani Power to supply coal-generated electricity from the 1,600 MW Godda plant in India. Business Today could not independently verify the report by Financial Times.
Despite the mounting financial strain, Adani Power remains committed to delivering reliable energy to Bangladesh. “We are in constant dialogue with the Bangladesh government and have appraised them of this unsustainable situation where we are meeting not just our supply commitment but also [commitments] to our lenders and suppliers in spite of rising receivables,” the company was quoted in the Financial Times report.
The financial burden is part of a larger energy crisis in Bangladesh, where power-related debts have ballooned to $3.7 billion. Muhammad Fouzul Kabir Khan, Yunus’s chief energy adviser, noted that Bangladesh owes $492 million out of the $800 million it is in debt to Adani. In response, the interim government is seeking financial aid from international bodies like the World Bank to stabilise the economy.
Bangladesh’s rapid growth has been undermined by chronic energy shortages, exacerbated by falling domestic gas reserves. Critics argue that the previous administration’s practice of bypassing open tenders contributed to inefficiencies and corruption, worsening the situation.
Adani Power, a conglomerate with diverse investments, including a $10 billion semiconductor project, remains committed to the power deal. “Currently our Godda plant is not connected to the Indian grid and hence there is no question of looking for any alternate supply market,” Adani stated, refuting any plans to divert power away from Bangladesh.
The interim government has expressed its intention to review previous energy deals, aiming to bring back competitive bidding and improve financial oversight. Despite this, it remains focused on maintaining balanced relations with both India and China, stressing the importance of cost-effective and transparent infrastructure agreements going forward.
