Shares of Adani Power were trading slightly higher on Monday despite a report over the weekend confirming that the company was owed a large sum of unpaid dues amid economic and political turmoil in Bangladesh.

What Happened: The Gautam Adani-owned power firm is reportedly dealing with unpaid dues of around $800 million (₹6,705 crore) from Bangladesh.

This debt has accumulated for electricity supplied by Adani Power's coal-fired plant in Godda, located in Jharkhand, India. Ahsan H Mansur, the newly appointed Governor of Bangladesh Bank, confirmed the unpaid dues in an interview with Bloomberg News on Friday.

"If we don't pay them, they will stop providing electricity," Mansur told the business news portal. Although Adani Power has no immediate plans to cut off the electricity, the company might face pressure from its lenders and coal suppliers if the payments continue to be delayed, sources told the publication.

The company is currently negotiating with Bangladesh’s interim government to resolve this issue, they added.

The Adani Group is also reportedly looking to sell a 5% stake each in Adani Power and Ambuja Cements via block deals or an offer for sale as it looks to cut down on its debt.

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Neighbourhood Jitters: The delayed payments highlight the financial and political risks that the Adani Group faces as it expands its operations in neighbouring countries like Bangladesh, Sri Lanka, Bhutan and Nepal.

Adani Power’s Godda power plant began its operations in April 2022 with outsized ambitions in Bangladesh. Besides Adani Power, other Indian state-owned companies like NTPC and PTC India also supply electricity to the country, but it is not clear if these companies are also owed money.

Earlier this month, Bangladesh saw the installation of an interim government by the country’s army chief and president after violent student-led protests forced former Prime Minister Sheikh Hasina to leave the country. Bangladesh is still grappling with an economic crisis, with total outstanding payments reaching about $2 billion (₹16,764 crore), including urgent dues to airlines.

The country’s foreign exchange reserves are also depleting, standing at $20.5 billion (₹1.71 lakh crore) as of July 31, just enough to cover three months of imports. The interim government is seeking additional loans from the International Monetary Fund (IMF) to navigate its economic difficulties.

Price Action: Adani Power shares recovered quickly from a weak start to the session on Monday, trading 0.18% at ₹677.05.

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