Adani Power Ltd (APL) has opted for international arbitration to resolve a payment dispute with the Bangladesh Power Development Board (BPDB) concerning electricity supplied from its 1,600 MW Godda coal-based power plant in Jharkhand. The move comes after prolonged discussions over differences in cost calculations and billing under a 25-year Power Purchase Agreement (PPA) signed in 2017.
According to company officials, both parties have mutually agreed to invoke the dispute resolution clause to ensure transparency and protect long-term cooperation. An Adani Power spokesperson said that there are disagreements in how certain cost elements are computed and billed. Both partners have agreed to invoke the dispute-resolution process and are confident of a quick, smooth, and mutually beneficial outcome.
The BPDB, meanwhile, has stated that it remains engaged in negotiations and will consider arbitration after discussions conclude. Reports indicate that while earlier this year Bangladesh’s dues to Adani Power were nearly USD 2 billion, they have now been reduced to the equivalent of just 15 days of tariff payment, reflecting significant progress in clearing outstanding amounts.
Industry analysts view the arbitration step as a strategic move by Adani Power to formalize dispute resolution while maintaining supply stability. The company continues to export power to Bangladesh without disruption, reaffirming its commitment to support the neighbouring nation’s growing energy needs.
The Godda plant, operated through a cross-border transmission arrangement, meets a notable share of Bangladesh’s power demand. The dispute primarily relates to tax treatment, fuel costs, and related cost components that impact the final tariff structure under the PPA.
Adani Power emphasized that arbitration would not affect ongoing supply or the company’s regional growth plans. Both sides are expected to appoint arbitrators soon, aiming for an expeditious and amicable settlement.
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