Bangladesh claims Adani Power has defaulted on a massive energy contract, sparking a contentious dispute.

The interim government of Bangladesh has accused energy supplier Adani Power of breaching a multi-billion-dollar agreement to provide power from its coal-fired plant in India. The agreement, signed in 2017, included an additional implementation agreement that addressed the transfer of tax benefits from India. However, Adani Power failed to pass on these benefits, costing Bangladesh millions of dollars, according to documents and sources. The Bangladesh Power Development Board has written several letters to Adani Power asking them to remit the benefits, but has not received a response. Bangladesh is now seeking to renegotiate the deal, citing that it was negotiated hastily and is more expensive than other coal power deals in the country. The Indian company has denied any wrongdoing and is contesting Bangladesh’s claims. The dispute has led to a payment dispute and a reduction in power supply from the Indian plant. Bangladesh is pushing for a resolution, with its de facto power minister saying the country now has enough domestic capacity to cope without the Adani supply.