In June 2025, Bangladesh made its single largest power payment of USD 437 million to Adani Power, settling all pending dues, including carrying costs and obligations under the Power Purchase Agreement (PPA). This significant development has reaffirmed Adani Power’s Godda plant as a reliable and competitively priced energy source for Bangladesh.
Regular Payments and Additional Guarantees
Bangladesh is now making regular payments to Adani Power, with Letter of Credit (LC) coverage equivalent to about two months of billing. In addition, a sovereign guarantee has been provided to secure all dues, putting Adani in a stable financial position. Over the past three to four months, monthly payments have ranged between USD 90–100 million, leading up to the large June settlement.
Adani Asked to Resume Full Supply
With the dues cleared, the Bangladesh Power Development Board (BPDB) has requested Adani Power to resume supply from both units of the Godda power plant in line with BPDB’s schedule. The plant supplies 1,600 MW of electricity, meeting around 10% of Bangladesh’s total power demand.
Power Supply Restored After Past Disruptions
Adani had reduced power supply by half in November 2024 due to payment defaults by Bangladesh under the 2017 long-term power deal. Full supply resumed in March 2025 after consistent monthly repayments started. The financial crisis in Bangladesh, triggered by rising import costs following the Russia-Ukraine war and political unrest, had delayed payments and affected power imports.
Credit Rating Upgrade Likely
The resolution of payment issues and integration of the Godda subsidiary into Adani Power Ltd (APL) have strengthened the company’s operational and financial framework. Lenders now expect an upgrade in APL’s credit rating from AA to AA+, which could reduce its borrowing costs and enhance investor confidence.
PPA Cleared of Controversy
Bangladesh’s interim government had earlier scrutinized the PPA signed under former Prime Minister Sheikh Hasina, questioning its transparency. However, investigations into the agreement with Adani Power found no adverse elements, reinforcing the validity of the deal.
Energy Security Amid Economic Turmoil
The payment clearance follows a period of severe energy shortages in rural Bangladesh. The country has struggled to maintain foreign currency reserves needed to import essentials such as power, coal, and oil. The IMF has already provided a USD 4.7 billion bailout, with an additional USD 3 billion request pending from the interim administration that succeeded Sheikh Hasina in August 2024.
Godda Plant Key to Bangladesh’s Power Stability
The 25-year agreement signed in 2017 mandates that all electricity generated from the Godda coal-fired plant be exported to Bangladesh. Despite earlier concerns and supply cuts, the plant has now become a fully integrated and essential component of Bangladesh’s power grid.
Adani Among Key Indian Power Suppliers
Apart from Adani Power, Indian public sector entities like NTPC Ltd and PTC India Ltd also supply electricity to Bangladesh. The restoration of full power from Adani is expected to support Bangladesh’s energy needs as it stabilizes from recent political and economic shocks.
