The project to supply electricity from Nepal to Bangladesh using the Indian grid has been officially inaugurated. This historic step was initiated through a virtual ceremony. India's Minister of Power, Housing and Urban Affairs Manohar Lal, Advisor to the Ministry of Power, Energy and Mineral Resources of Bangladesh participated in the event. Fawzul Kabir Khan and Nepal's Energy, Water Resources and Irrigation Minister Deepak Kharka.
This information has been informed in the notification of the Ministry of Power published by the Press Information Bureau (PIB), the Public Relations Department of the Government of India on Friday.
This marks a milestone for the first ever tripartite power transaction between Nepal, India and Bangladesh.
Background to Power Export Decisions
The decision to export this power was taken during the visit of former Prime Minister of Nepal Pushpa Kamal Dahal (Prachanda) to India in May 2023. During the visit, the two countries pledged to increase regional energy cooperation and strengthen economic ties. According to the decision, 40 MW of electricity from Nepal is planned to be supplied to Bangladesh using the Indian grid.
Signing of the Tripartite Agreement
Following this, a Tripartite Power Sale Agreement was signed in Kathmandu on 3 October 2024. The institutions participating in the agreement are:
-Nepal Electricity Authority (NEA)
-Bangladesh Power Development Board (BPDB)
-NTPC Power Trading Corporation of India (NTPC)
The agreement paves the way for the start of power supply operations and opens new doors for sub-regional energy cooperation.
Regional cooperation in power sector
Electricity supply from Nepal to Bangladesh has become a model of sub-regional cooperation. This is not only a matter of power supply, but also a major step towards increased connectivity and economic prosperity between the regions.
Nepal will be able to provide uninterrupted supply of its surplus hydropower to Bangladesh. This will be an effective example of balanced distribution of electricity across the Indian grid.
The stakeholders believe that this power supply initiative can create opportunities for energy cooperation on a larger scale. Development of regional electricity market and strengthening of economic relations between Nepal, India and Bangladesh is expected.
All three countries will benefit from the implementation of this project. Neighboring countries expect Bangladesh to be able to meet its growing electricity needs, Nepal to make good use of its hydropower resources and India to play an important role as a hub for regional electricity connectivity.
