As an energy crisis approaches, Adani alerts Bangladesh to $500 million in "unsustainable" payment delays.

The Adani Group, headed by billionaire Gautam Adani, has sent a strong warning to Nobel laureate Muhammad Yunus's new interim government in Bangladesh about the growing amount of unpaid debt from a big power project. Bangladesh is $500 million behind on payments, according to a Financial Times report, and Adani has called the situation "unsustainable."

After former Prime Minister Sheikh Hasina was overthrown last month, Yunus's administration has found itself facing a significant obstacle in the form of this payment shortfall. The costly infrastructure deals struck under Hasina, such as the controversial agreement with Adani to supply coal power from its 1,600 megawatt Godda plant in India, have drawn criticism from Yunus's government.

In a statement to the Financial Times, Adani Power underlined that, in spite of mounting financial pressure, it remains committed to giving Bangladesh access to reliable power. The company stated, "We are in constant communication with the government of Bangladesh and have evaluated them of this unsustainable situation where we are fulfilling not only our commitments to suppliers and lenders, but also our supply commitments in spite of growing receivables."

The financial obligations are a part of Bangladesh's larger energy crisis, as the country's total power-related debt has grown to $3.7 billion. Chief energy advisor to Yunus, Muhammad Fouzul Kabir Khan, told the Financial Times that Bangladesh owes Adani $800 million, of which $492 million is past due. To stabilize its economy, the interim administration is looking to foreign lenders, such as the World Bank, for financial support.

Bangladesh has grown quickly in recent years, but it still faces persistent energy shortages, which are made worse by the country's depleting natural gas reserves. Opponents have cited actions taken by the previous government that have led to pervasive corruption and inefficiencies, such as avoiding open tendering procedures.

Major conglomerate Adani is still committed to providing power to Bangladesh. Its investments include a recently announced $10 billion semiconductor plant. The Yunus administration has, however, made plans to review earlier energy agreements with the goal of reinstating competitive bidding and bolstering regulatory oversight.

Adani has reaffirmed its commitment to the agreement by saying that it has no plans to divert power supplies away from Bangladesh in spite of the financial pressures. The company stated, "As of right now, our Godda plant is not connected to the Indian grid, so there is no question of looking for any alternate supply market."

The interim administration has stated that it wants to keep good relations with China and India while attempting to renegotiate terms for greater financial efficiency. It has also stressed that any future infrastructure agreements must be transparent and affordable.