Adani Power Ltd (APL) will invoke an international arbitration process to resolve disputes over power supply payments with Bangladesh, the company said on Monday.

APL has been at loggerheads with the Bangladesh Power Development Board over pending payments for the electricity it supplies as part of a pact signed in 2017.

“There are disagreements in the way certain cost elements are calculated and billed. Hence, both partners have agreed to invoke the dispute resolution process and are confident of a quick, smooth and mutually beneficial resolution,” an Adani Group spokesperson said in a statement.

On Sunday, local media had quoted Bangladesh’s Muhammad Fouzul Kabir Khan, who is an adviser to the ministry of power, energy and mineral resource, saying that the Adani contract could even be cancelled if corruption was found in the process. However, Khan told Reuters that negotiations are still on. “Once that process is over, we will move toward international arbitration, if needed,” he said.

APL supplies electricity from its coal-fired 1,600 meg-awatt Godda power plant in Jharkhand.

Bangladesh’s interim government had accused Adani of breaching the agreement by withholding tax benefits that the Godda plant got from India. Bangladesh paid Adani a tariff of 14.87 taka ($0.12) per unit during the fiscal year to June 30, 2024, higher than an average of 9.57 taka for power supplied by other Indian firms.

Adani Power last week said its power dues from Bangladesh had narrowed to the equivalent of 15 days of tariff, down from $900 million in May, and $2 billion early this year.

“Adani Power will continue to support Bangladesh by supplying reliable, cost-competitive and high-quality power,” the company said on Monday.