Adani Power in India announced on Monday that it has opted for an international arbitration process to settle disputes over Bangladesh’s power supply payments. The company has been at odds with the Bangladesh Power Supply Board over pending payments for the electricity it supplies as part of the 2017 pact signed by both parties.
“There are disagreements regarding the calculation and billing of certain cost elements. Hence, both parties have agreed to invoke the conflict settlement process and are confident of a quick, smooth, and mutually beneficial resolution“, an Adani Group spokesperson said.
Adani Power supplies electricity from its 1,600-megawatt coal-fired Godda power plant in eastern India, which meets approximately one-tenth of Bangladesh’s needs. Bangladesh’s interim government had made an allegation against Adani India of breaching the power purchase agreement by retaining tax benefits that the Godda plant receives from India.
Bangladesh paid the Adani tariff of 14.87 taka ($0.1220) per unit during the fiscal year to June 30, 2024, more than the average of 9.57 taka for power supplied by other Indian companies.
Last week, Adani Power stated that its power dues from Bangladesh had tightened significantly, equivalent to 15 days of tariff, down from approximately $900 million in May and around $2 billion at the beginning of this year.
Earlier, Adani Power Ltd. proposed a contract of 6,400 MW of new generation capacity for eight thermal Power units to Larsen & Toubro Ltd. (L&T) to its specialised business vertical, CarbonLite Solutions (LTECLS).
