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Bangladesh’s new PM Tarique Rahman aims to renegotiate Adani Power deal for lower prices, following economic reforms and changes after Hasina’s ouster.
By Bloomberg February 23, 2026, 6:52:02 PM IST (Published)
3 Min Read
Bangladesh plans to renegotiate its power purchase deal with India’s Adani Power Ltd. in order to seek lower prices, according to people familiar with the matter, marking one of the newly elected government’s first initiatives since taking office last week
The cost of coal used by the Indian power supplier is too high, as is the price of electricity being charged to Bangladesh, said one of the people, a senior government official. Reopening negotiations with the company is at the top of the agenda for the new government, the person said, who asked not to be identified because the discussions are private. The government hasn’t yet raised the matter with the company, the person said.
Rezaul Karim, chairman of the Bangladesh Power Development Board, didn’t respond to calls for comment. A representative for Adani Power said it hasn’t received any communication from the government regarding renegotiations, and it was meeting all its supply obligations under the contract.
Adani Power has been supplying electricity to Bangladesh from its coal-fired plant in the Indian state of Jharkhand since 2023. Bangladesh began importing all of the power produced at Adani Power’s 1,600-megawatt unit under a 25-year power purchase agreement negotiated during the reign of then-leader Sheikh Hasina.
Hasina was ousted in August 2024 after thousands of mainly young protesters took to the streets demanding she step down. Two months later, Adani Power reduced electricity supply to Bangladesh because of unpaid bills, risking blackouts. The country accumulated billions of dollars in unpaid power bills at the time. Power supplies were returned to normal in March last year.
Economic Stability
New Prime Minister Tarique Rahman, whose Bangladesh ist Party won a sweeping victory in elections this month, has pledged to restore political and economic stability in the country.
Renegotiating the contract may complicate relations with India, which has taken steps to reset ties with Rahman’s government. Relations came under strain during the interim government led by Nobel laureate Muhammad Yunus, who pushed for closer ties with China and demanded India — which has sheltered Hasina since 2024 — extradite her to face criminal charges.
Rahman’s government has said it favors a more balanced foreign policy that works for Bangladesh.
The government wants to negotiate the agreement with Adani out of court, which would be an easier process for both parties, the official familiar with the matter said.
Most of Bangladesh’s energy needs are met through natural gas and coal.
(Edited by : Sheersh Kapoor)
