Under a 25-year agreement signed in 2017, Adani Power was to supply all electricity generated from the Godda plant to Bangladesh.
In 2017, Adani Power and the Bangladesh government signed a 25-year power supply agreement. Under this agreement, 100% of the electricity was to be supplied to Bangladesh from the 1600 MW dedicated thermal power project located in the Godda district of Jharkhand. This project meets approximately 10% of Bangladesh's electricity needs.
Record $437 million payment made in June
Bangladesh paid Adani Power $437 million in June 2025. This is the largest single payment to date, which includes all outstanding dues, carrying costs, and resolution of issues related to the Power Purchase Agreement. This has strengthened Adani Power's financial position and increased the company's credibility.
Regular payments have been made for the past few months
According to sources, Bangladesh has been paying $90 to $100 million every month for the last three to four months. The outstanding amount was cleared with a lump sum payment in June. Along with this, Bangladesh has also issued a Letter of Credit and government guarantee equivalent to two months of billing.
Electricity supply resumes at full capacity
Now that all financial hurdles have been overcome, Bangladesh has requested Adani Power to fully restore the electricity supply. The company is now sending electricity from both units of the Godda project to Bangladesh. This supply is taking place according to the schedule of the Bangladesh Power Development Board.
Russia-Ukraine war and dollar crisis were obstacles
The war between Russia and Ukraine, the rising price of the dollar, and the internal political situation in Bangladesh had hindered payments. After the Sheikh Hasina government stepped down in August 2024, the situation became even more difficult. Due to the lack of payment, Adani Power had reduced its supply to half in November 2024. However, after the start of outstanding payments from March 2025, the electricity supply was gradually increased again.
Government investigated the PPA
The interim Yunus government, formed after the fall of the Sheikh Hasina government, reviewed the Power Purchase Agreement (PPA) with Adani Power. This investigation did not reveal any irregularities or corruption. This confirmed that the agreement was transparent and in the interest of both countries. This further strengthened Adani Power's credibility.
Godda plant becomes the cheapest supply source for Bangladesh
According to the Merit Order Dispatch of the Bangladesh Power Development Board, the Godda plant is providing electricity to Bangladesh at the lowest rates. The electricity from this plant is available at a more competitive rate than other sources in the country. This is why this plant has become an important part of Bangladesh's energy needs.
Credit rating may improve
Now that Adani Power's financial position has stabilized and operations have also become normal, experts believe that the company's credit rating can be upgraded from AA to AA+. This will make it easier for the company to raise capital and interest rates may also fall.
Subsidiary of the Godda project merged
Adani Power has now merged the original subsidiary of the Godda project into the main company. This has increased coordination in operations and also reduced costs. The company is now operating this plant directly under its main structure.
Bangladesh's foreign exchange crisis and assistance from the IMF
Bangladesh is currently facing a foreign exchange crisis. The government is under pressure due to the electricity shortage in rural areas and the protests by students. Meanwhile, the Yunus government has sought an additional $3 billion in assistance from the International Monetary Fund (IMF). Earlier, the IMF had already provided a $4.7 billion bailout package to Bangladesh.
Key figures that clarify the entire situation
- Amount of payment: $437 million (in June)
- Source of supply: Godda plant in Jharkhand (1600 MW capacity)
- Share in Bangladesh's electricity demand: About 10 percent
- Regularity of payments: $90-$100 million every month for the last 3-4 months
- New government guarantee: Two-month LC and sovereign guarantee
- Supply status: Full supply restored from both units
- Confirmation of PPA validity: No irregularities found in the new government's investigation
- Potential credit rating: Could increase from AA to AA+
