Bangladesh Owes $800 Million to Gautam Adani’s Adani Power 

Billionaire Gautam Adani’s power-generating company, Adani Power Ltd., faces significant unpaid dues from Bangladesh, amounting to $800 million.

The South Asian nation, which has recently experienced violent protests leading to political upheaval, owes this sum for electricity supplied by Adani’s coal-fired power plant in Godda, Jharkhand, India.

Unpaid Dues to Adani Power and Potential Supply Risks:

Bangladesh Bank’s newly-appointed Governor, Ahsan H. Mansur, revealed the debt in an interview. He expressed concerns that failure to pay could result in Adani Power halting electricity supply.

Although Adani Power has no immediate plans to cut off supply, if the dues remain unpaid, the company may face pressure from lenders and coal suppliers.

Adani Power is reportedly discussing with Bangladesh’s interim government to resolve the issue, though the outcome remains uncertain.

Geopolitical and Financial Risks:

The delayed payments highlight the geopolitical and financial risks of Adani Group’s expanding global presence. Particularly in neighboring countries like Bangladesh, Sri Lanka, Bhutan, and Nepal.

These expansions often align with Indian Prime Minister Narendra Modi’s foreign policy priorities.

Bangladesh’s situation is further complicated by an ongoing economic crisis. Overall arrears amount to $2 billion, including payments owed to various sectors such as airlines.

The country’s foreign exchange reserves have dwindled to $20.5 billion, enough to cover only three months of imports.

Economic Struggles and Political Instability in Bangladesh:

Bangladesh’s economic challenges are compounded by political instability, with recent student-led protests forcing former Prime Minister Sheikh Hasina to flee the country. The interim government, installed with the help of the military, is now seeking additional loans from the International Monetary Fund (IMF) beyond an existing $4.7 billion program to address its financial woes.

Governor Mansur emphasized the urgency of securing funds to clear the nation’s arrears, underscoring the broader economic difficulties Bangladesh is currently facing.

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