Bangladesh has made a record payment of US$437 million to India’s Adani Power in June, significantly reducing its outstanding arrears and securing a waiver of US$20 million in late payment interest.

The Bangladesh Power Development Board (BPDB) confirmed the transaction, describing it as the highest monthly payment made since power imports from Adani’s Godda plant in Jharkhand began in April 2023. With this payment, the total remitted to Adani Power Jharkhand Ltd (APJL) stands at approximately US$1.5 billion.

BPDB Chairman Md Rezaul Karim told The Financial Express that the payment was intended to reduce the overdue amount and noted Adani’s positive response, including the waiver on interest.

However, a dispute remains over the remaining dues. BPDB estimates outstanding payments at US$193 million, while Adani claims the figure is closer to US$340 million. The discrepancy stems from differences in coal pricing formulas and capacity charge calculations embedded in the power purchase agreement (PPA).

Adani has thus far received overdue payments up to March and expects the remainder to be cleared by September. The backlog had previously ballooned to nearly US$900 million, prompting Adani to shut one power unit in November 2023 and threaten a complete halt to electricity supply.

The original 25-year PPA, signed in 2017, has faced criticism over terms seen as disproportionately favourable to Adani, particularly on coal sourcing costs and tax waivers. A government committee has flagged the deal for further scrutiny, with both parties now engaged in renegotiations.