Adani Power Faces Bangladesh Tariff Dispute as Grid Connectivity Plans Advance
Bangladesh's interim government committee has accused Adani Power of charging approximately 50% above market rates for electricity from its Godda plant, alleging overpricing of 4-5 cents per kWh. The company generates over ₹ 8,300 crore annually from the Bangladesh deal, representing over 14% of its FY25 revenue. Adani Power plans to connect the plant to India's grid by December 2025 for potential relief, though Indian market rates are significantly lower at ₹ 5.37 per unit compared to $0.135 per unit charged to Bangladesh.
*this image is generated using AI for illustrative purposes only.
Adani Power Limited is facing intensified scrutiny over its electricity pricing to Bangladesh, as the country's interim government committee alleges the Indian company charges approximately 50% above market rates. The development has added urgency to the company's plans for connecting its Jharkhand plant to India's power grid.
Bangladesh Committee Alleges Overpricing
A five-member National Review Committee (NRC) set up by Bangladesh's interim government to review power supply deals has accused Adani Power of exporting electricity at inflated rates. The committee's report, dated 20 January, estimates overpricing of 4-5 cents per kWh for the Adani Godda imported power contract.
| Parameter: | Details |
|---|---|
| Alleged Overpricing: | 4-5 cents per kWh |
| Price Premium: | Approximately 50% above market rates |
| Bangladesh Tariff: | $0.135 per unit (₹ 12.30) |
| Bangladesh Payment Rate: | 14.87 taka per unit |
The NRC noted that "benchmarking undertaken shows that the approved tariff for Adani was the highest among comparable electricity import contracts from India at the time of signing and that subsequent tariff escalation exceeded peer contracts by a substantial margin."
Financial Impact and Grid Connectivity Plans
The Bangladesh deal represents a significant revenue stream for Adani Power, generating substantial annual returns from its 1.6GW Godda plant operations.
| Financial Metric: | Annual Amount |
|---|---|
| Revenue from Bangladesh: | Over ₹ 8,300 crore |
| EBITDA from Bangladesh: | Over ₹ 4,800 crore |
| Share of FY25 Revenue: | Over 14% |
| Share of FY25 EBITDA: | Nearly 20% |
Adani Power CEO S.B. Khyalia indicated during an analyst call on 30 October that the company expects grid connectivity to India by December 2025. The coal-fired plant in Jharkhand's Godda, currently linked only to Bangladesh's grid, has received approval to connect to India's power infrastructure.
However, connectivity with the Indian grid would only provide partial relief if Bangladesh terminates the deal, as the company sells electricity in India's merchant market at significantly lower rates of ₹ 5.37 per unit during the first six months of FY26.
Payment Challenges and Operational Impact
Adani Power has faced substantial payment delays from Bangladesh, with pending dues reaching as high as $800 million last year. Recent consistent payments have reduced this deficit to only 15 days of delayed payments as of the October analyst call.
The company can supply power to India under two specific conditions: persistent lack of power scheduling by Bangladesh or payment defaults by the country. Cash flows from the Godda plant remain exposed to:
- Payment delays
- Power purchase agreement renegotiation risks
- Legal uncertainty following Bangladesh High Court scrutiny
Review Committee Composition and Allegations
The five-member NRC panel includes notable experts: Moyeenul Islam Chowdhury (former high court judge), Abdul Hasib Chowdhury (professor at Bangladesh University of Engineering and Technology), Ali Ashfaq (former KPMG Bangladesh partner), Mushtaq Husain Khan (SOAS University of London economics professor), and Zahid Hussain (former World Bank lead economist).
Bangladesh has accused Adani Power of not passing on Indian tax incentives that should have lowered tariffs and disputed coal cost calculations, alleging prices higher than market levels.
Company Response and Broader Context
An Adani Group spokesperson stated the company has not received communication regarding the review committee report and was never approached by Bangladesh authorities for input. The spokesperson emphasized that Adani Power meets about 10% of Bangladesh's power demand and supplies "reliable, high quality and amongst the most competitively priced power" compared to similar imported coal-based plants.
Adani Power has been supplying thermal power to Bangladesh from its Godda plant since 2023 under a 25-year deal signed in 2017. The company generated ₹ 18,711 crore in free cash from operations in the year ended March 2025, making it a crucial cash generator for the Adani Group's 13 listed companies.
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