The Adani Group of India has raised concerns over Bangladesh’s growing debt, which now exceeds $500 million, stemming from a contentious power supply deal. The country’s inability to settle these dues has created a financial burden described by Adani as “unsustainable.”
Bangladesh’s interim government, led by Nobel laureate Muhammad Yunus, has inherited a deepening financial crisis, largely blamed on the previous administration under Sheikh Hasina. Among the most disputed agreements is a deal with Adani Power, which supplies electricity from its 1,600-megawatt Godda plant in India. Critics have pointed to the inflated costs and lack of transparency in these agreements, accusing them of exacerbating the country’s financial woes.
Despite rising unpaid bills, Adani Power continues to honor its supply commitments but has expressed concerns over the long-term sustainability of the arrangement. As Bangladesh struggles to stabilize its economy, the new administration is seeking assistance from international lenders, including the World Bank, to manage its ballooning power debts.
Bangladesh, a rapidly growing nation and the world’s second-largest garments exporter, has long been troubled by energy shortages, driven by diminishing domestic gas supplies. Yunus’s government has vowed to reform energy policies, reintroducing competitive bidding and ensuring better oversight over future projects.
The situation underscores the broader challenges the country faces in navigating its relationships with key regional players like India and China, as it seeks more cost-effective infrastructure solutions.
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