First power transmission from Nepal to Bangladesh via Indian grid begins

Last Updated18/11/2024

A trilateral power-sharing agreement between India, Nepal, and Bangladesh came into effect on Friday, marking the start of electricity supply from Nepal to Bangladesh via an Indian grid.

The first-ever trilateral power-sharing agreement among India, Nepal, and Bangladesh came into effect on Friday. This milestone marks the beginning of electricity supply from Nepal to Bangladesh using India's grid, a significant development in sub-regional energy cooperation.

Participants and Facilitation:
- Nepal will export up to 40 MW of electricity to Bangladesh through the Indian power grid.
- India acts as the transit country, facilitating the transaction.
Inauguration:
- The initiative was virtually inaugurated by:
- Manohar Lal, India’s Union Minister for Power and Housing & Urban Affairs.
- Md. Fouzul Kabir Khan, Adviser to Bangladesh’s Ministry of Power, Energy, and Mineral Resources.
- Dipak Khadka, Nepal’s Minister of Energy, Water Resources, and Irrigation.

Announcement:
- The decision to facilitate this power transaction was first announced during the visit of Nepal’s former Prime Minister Pushpa Kamal Dahal ‘Prachanda’ to India in June 2023.
Tripartite Agreement:
- Signed on October 3, 2024, in Kathmandu between:
- NTPC Vidyut Vyapar Nigam (India).
- Nepal Electricity Authority (Nepal).
- Bangladesh Power Development Board (Bangladesh).

Energy Connectivity:
- This marks the first instance of a trilateral power transaction in the region, fostering cross-border energy collaboration.
Strengthening Sub-Regional Ties:
- Enhances interlinkages between the economies of India, Nepal, and Bangladesh.
- Creates a framework for broader regional energy cooperation.
Economic and Developmental Benefits:
- Boosts sub-regional connectivity in the power sector, benefiting stakeholders across all three countries.
- Supports the long-term vision of energy security and economic integration in South Asia.