Bangladesh is facing a big challenge over an unpaid energy bill of nearly $500 million owed to India, and it’s putting pressure on the country’s new interim government. The Financial Times (FT) recently reported that Bangladesh is rethinking its energy deals, particularly one involving Indian conglomerate Adani Group.

The Background

For years, Bangladesh has been buying power from India, especially from Adani’s coal-powered plant in Jharkhand. This deal was signed back in 2015 when Indian Prime Minister Narendra Modi visited Bangladesh. The agreement promised a steady supply of electricity to Bangladesh for 25 years. Power deliveries started last year through a dedicated transmission system.

However, things haven't gone as planned. Bangladesh is now behind on payments, and Adani is owed around $800 million in total. The country’s overall power-related debt stands at a staggering $3.7 billion.

What’s Happening Now?

Bangladesh recently went through a political shake-u...