India, Nepal, Bangladesh

India Forms Tri-Lateral Energy Supply Agreement with Nepal And Bangladesh

Asia Manufacturing Review Team | Friday, 15 November 2024

 India, Nepal, Bangladesh

Union Minister Manohar Lal Khattar, along with officials from Nepal and Bangladesh, inaugurated the first trilateral power flow transaction from Nepal to Bangladesh via the Indian power grid in a virtual event hosted by Nepal's Ministry of Energy, Water Resources, and Irrigation. The initiative, involving the export of 40 MW of hydropower from Nepal to Bangladesh using India’s transmission infrastructure, marks a milestone in regional energy cooperation. This transaction stems from commitments made in June 2023 during the visit of Nepal’s former Prime Minister Pushpa Kamal Dahal to India, with a formal tripartite power sales agreement signed in October 2023 in Kathmandu between the Nepal Electricity Authority, Bangladesh Power Development Board, and NTPC Vidyut Vyapar Nigam.

Representing their respective nations, Khattar joined Nepal’s Minister of Energy, Water Resources, and Irrigation, Dipak Khadka, and Md Fouzul Kabir Khan, an advisor from Bangladesh's Ministry of Power, Energy, and Mineral Resources, to celebrate this development, which is expected to boost sub-regional connectivity in the power sector.

Minister Khattar emphasized the mutual benefits of the collaboration, highlighting how the use of India’s grid for Nepal’s electricity export would strengthen economic interlinkages and promote regional energy stability. The project underscores the potential of cross-border infrastructure sharing and renewable energy trade, setting a precedent for enhanced cooperation among South Asian nations.