Adani Issues Warning to Bangladesh Over $500 Million in Payment Delays Amid Looming Energy Crisis

Billionaire Gautam Adani's Adani Group has issued a severe warning to Bangladesh’s interim government, led by Nobel laureate Muhammad Yunus, over a growing backlog of unpaid dues from a major power project. According to the Financial Times, Bangladesh is $500 million behind on payments, with Adani describing the situation as "unsustainable."

This payment shortfall has become a significant issue for Muhammad Yunus’s administration, which assumed power last month following the removal of former Prime Minister Sheikh Hasina. Yunus’s government has criticised the costly infrastructure deals negotiated under Hasina’s leadership, including the controversial agreement with Adani to supply coal power from its 1,600-megawatt Godda plant in India.

The financial liabilities are part of a broader energy crisis in Bangladesh, where total power-related debts have reached $3.7 billion. Muhammad Fouzul Kabir Khan, chief energy adviser to Yunus, informed the Financial Times that Bangladesh is overdue on $492 million of its $800 million debt to Adani. The interim government is actively seeking financial assistance from international lenders, including the World Bank, to stabilise the country’s economy.

Despite its recent rapid growth, Bangladesh is struggling with persistent energy shortages, worsened by dwindling domestic gas reserves. Critics argue that the previous administration's decisions, including avoiding open tendering processes, have led to significant corruption and inefficiencies in the sector.

Adani, a prominent conglomerate with a broad range of investments, including a newly announced $10 billion semiconductor plant, remains dedicated to supplying power to Bangladesh. However, the Yunus administration has signalled its intention to reassess previous energy agreements, with plans to reintroduce competitive bidding and enhance regulatory oversight. Despite the financial strain, Adani has stated that it has no plans to redirect power supplies away from Bangladesh, reaffirming its commitment to the agreement. The company clarified, "Our Godda plant is currently not connected to the Indian grid, so there is no intention to seek alternative supply markets."