NEW DELHI: 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.
This is the first trilateral power transaction which has been carried out through the Indian grid.
The initiative was jointly inaugurated virtually by Union Minister for Power and Housing & Urban Affairs, Manohar Lal, along with Md. Fouzul Kabir Khan, Adviser to the Ministry of Power, Energy and Mineral Resources, Bangladesh, and Dipak Khadka, Minister of Energy, Water Resources and Irrigation, Nepal.
India announced its decision to facilitate the first trilateral power transaction from Nepal to Bangladesh through the Indian grid during the visit of former Nepalese Prime Minister Pushpa Kamal Dahal 'Prachanda' to India, from May 31 to June 3, 2023. The agreement includes the export of up to 40 MW of power.
During the visit, both sides reaffirmed their commitment to enhancing sub-regional cooperation, particularly in the energy sector. They emphasised that increased collaboration would strengthen inter-linkages between the economies, benefiting all stakeholders involved.
Subsequently, a tripartite power sales agreement between NTPC Vidyut Vyapar Nigam, Nepal Electricity Authority and Bangladesh Power Development Board was signed on 3 October 2024 in Kathmandu.
The start of this power flow from Nepal to Bangladesh through India is expected to boost sub-regional connectivity in the power sector.