Indian Power Companies Owed $1 Billion by Bangladesh

Five Indian power companies are owed over $1 billion for electricity supplied to Bangladesh, according to industry insiders. Adani Power, which operates a 1.6 GW coal-fired plant in Jharkhand, is the largest creditor, with $800 million outstanding. SEIL Energy India, NTPC, PTC India, and Power Grid Corporation of India are also owed significant sums.

Despite these substantial dues, the Indian companies have continued to supply electricity to Bangladesh, demonstrating the strong bilateral relationship between the two nations. However, industry experts warn that this situation cannot persist indefinitely as the Indian companies have obligations to their own stakeholders.

The Godda Power Plant, a key source of electricity for Bangladesh, has been operating since July 2023. Adani Power has continued to supply power as per the agreed schedule despite the outstanding payments. The plant’s output has been crucial in reducing Bangladesh’s reliance on costly liquid fuel for electricity generation.

Bangladesh’s ongoing financial challenges have highlighted the importance of timely payments for electricity imports. As the two countries work to strengthen their economic ties, it is essential to address these issues to ensure a sustainable and mutually beneficial energy partnership.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.