India’s Adani Group has voiced its concerns over Bangladesh’s escalating overdue payments, which have reached a staggering $500 million (₹4,197 crore), posing a potential early crisis for the newly formed government in Bangladesh.

What Happened: The Adani Group, helmed by Asia’s second-richest man, Gautam Adani, is dealing with a significant backlog of overdue payments from Bangladesh, according to a report by Financial Times. The payments are tied to a controversial power project that involves Adani’s 1,600-megawatt Godda plant in India.

The interim government of Bangladesh, under the leadership of Muhammad Yunus, is wrestling with a financial crisis that it attributes to the costly and non-transparent infrastructure deals negotiated by the previous government.

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Adani Power has been in continuous talks with the Bangladesh government, emphasising the untenable situation of fulfiling supply commitments and obligations to lenders and suppliers amidst escalating receivables.

Muhammad Fouzul Kabir Khan, Yunus’s chief energy adviser, said Bangladesh is late on paying $492 million (₹4,129 crore) to Adani, out of a total debt of $800 million (₹6,715 crore). The interim government has sought financial assistance from lenders, including the World Bank, in the form of billions of dollars in loans to stabilise its financial situation.

Despite the growing dues, Adani has committed to continue supplying power from its Godda facility to Bangladesh. The company has dismissed any plans to divert supplies away from Bangladesh, stating that their Godda plant is not connected to the Indian grid, thereby ruling out the possibility of seeking an alternate supply market.

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