Adani Power May Seek International Arbitration to Resolve Dispute with Bangladesh

India’s Adani Power may turn to international arbitration to resolve an ongoing payment dispute with Bangladesh over electricity supplies, according to a report of a company official.

A spokesperson for the Adani Group said in a statement that there are disagreements between the two parties regarding certain cost calculations and billing procedures. However, both sides remain committed to settling the matter and are hopeful for a “swift, smooth, and mutually beneficial resolution.”

Bangladesh’s Prime Minister’s Power and Energy Adviser, Mohammad Fowzul Kabir Khan, told that discussions are still ongoing, adding that the government will consider international arbitration if necessary.

Under a deal signed in 2017, Adani Power supplies electricity from India to the Bangladesh Power Development Board (BPDB), meeting nearly one-tenth of Bangladesh’s total power demand. However, the two sides have been locked in a prolonged dispute over unpaid bills and settlement procedures.

The development underscores growing financial and operational strains in Bangladesh’s power sector, as it grapples with rising import costs and mounting dues to international energy suppliers.