Adani Power expects full payment recovery from Bangladesh, says report

Bangladesh has made significant progress in settling its dues with India's Adani Power, having paid nearly $1.2 billion of the approximately $2 billion total owed under a 2017 power-supply agreement, according to a Reuters report. This development comes after Bangladesh faced financial strains due to increased import costs following the Russia-Ukraine conflict in 2022, coupled with domestic political upheaval last August that saw the removal of the prime minister. Despite these challenges, Adani Power has resumed full power supply to Bangladesh, with payments now exceeding the monthly billing amount. "We are supplying full power to Bangladesh ... the payment we are receiving now is more than the monthly billing," stated Dilip Jha, Adani Power's chief financial officer, during a post-earnings call with analysts last Thursday.

The power-supply agreement, initially impacted by Bangladesh's financial difficulties, saw Adani Power reduce its supply by half last year. However, the current steady flow of payments has encouraged the company to fully restore supply. The resumed payments have allowed Bangladesh to cover some of the outstanding dues, alleviating part of the financial burden. "We are hopeful that not only will we continue to receive payments equivalent to the current month's billing, but that the old outstanding dues will also be liquidated," Jha added.

Adani Power remains optimistic about recovering the approximately $900 million still due, said the Reuters report. The company's confidence is bolstered by the recent increase in payments, which are now more than sufficient to meet the monthly billing requirements. The resolution of this financial issue would mark a significant step forward for both parties involved in the agreement. The company has expressed reassurance that the ongoing payment arrangements with Bangladesh will eventually clear the remaining debt. "The company said Bangladesh has paid nearly $1.2 billion of the roughly $2 billion totally billed to the country."