Adani Power Says Bangladesh Clearing Dues, Godda Power Supply Running Smoothly

Adani Power has said Bangladesh is clearing its outstanding payments and continuing to import electricity regularly from the 1,600-megawatt Godda thermal power plant in India's Jharkhand state, expressing confidence that the remaining issues between the two sides will be resolved soon.

Speaking at the company's Annual General Meeting (AGM), Adani Power Managing Director Anil Sardana said that despite earlier concerns over delayed payments, the power supply agreement with the Bangladesh Power Development Board (BPDB) remains fully operational.

"Our power plant is performing well. Bangladesh continues to draw electricity as before, and our commercial agreement remains in force," Sardana told shareholders.

His remarks come as Bangladesh and Adani Power continue discussions to reconcile outstanding financial issues related to their long-term power purchase agreement for electricity imported from the Godda plant.

Sardana said the matters currently under arbitration are limited to the pricing of imported coal and certain accounting provisions, stressing that they do not affect electricity supply.

"The BPDB has agreed to appoint an independent expert to facilitate the discussions. These are relatively minor issues, and we are confident they will be resolved soon," he said.

According to Adani Power's annual report, both parties have requested the Singapore International Arbitration Centre (SIAC) to appoint an independent expert to help resolve the accounting differences. Adani Power and Bangladesh have each nominated representatives to engage with the expert, and the relevant agreements have already been signed.

Although the company did not disclose the exact amount owed by Bangladesh, it said collections from the country have improved significantly over the past year.

"Bangladesh has paid a substantial portion of its outstanding dues and has demonstrated its intention not to withhold payments," Sardana said. "I would also like to inform shareholders that Bangladesh has accepted the surcharge applicable for delayed payments. In other words, they are covering the additional costs incurred because of the payment delays. Their continued settlement of past dues reflects their commitment."

The company's annual report stated that Adani Power had recovered a significant portion of its outstanding receivables from Bangladesh, including surcharge payments, during the current financial year, and expects to receive the remaining amount on schedule.

The Godda project is considered a landmark initiative in India's cross-border electricity trade. The plant consists of two 800-megawatt generating units, with its entire electricity output supplied to Bangladesh under a long-term agreement. It is the first project developed under India's cross-border electricity trade policy and is the largest private thermal power plant in Jharkhand's Special Economic Zone.

Adani Power also said the plant has been connected to the Indian power grid and that discussions with Bangladesh have helped recover the majority of outstanding payments.