Bangladesh, India, Nepal relations

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Trilateral cooperation

Trilateral power transaction/ 2024

Nov 16, 2024: The Times of India

New Delhi: India joined Nepal and Bangladesh in inaugurating the first trilateral power transaction — from Nepal to Bangladesh through the Indian grid — in a major boost for energy connectivity in the region. With both Nepal and Bangladesh keen on long-term electricity trade, India had signed a tripartite agreement last month with the two countries to facilitate cross-border supply using an Indian transmission line.


Describing the inauguration as a historic occasion, the Indian govt said the start of this power flow is expected to boost sub-regional connectivity in the power sector.
 India had announced its decision to facilitate the trilateral power transaction through the Indian grid with an export of up to 40 MW of power during the visit of former Nepal PM Pushpa Kamal Dahal ‘Prachanda’ to India in June 2023. “During the visit, both sides had expressed their commitment towards greater subregional cooperation, including in the energy sector, which would lead to increased interlinkages between the economies for mutual benefit of all stakeholders,” said the MEA.


Union minister for power Manohar Lal inaugurated the electricity flow along with Bangladesh energy adviser Fouzul Kabir Khan and Nepal energy minister Dipak Khadka through a virtual event hosted by Nepal govt.


“This historic occasion marks the first trilateral power transaction which has been carried out through the Indian grid,” govt said. The agreement between NTPC Vidyut Vyapar Nigam, Nepal Electricity Authority (NEA) and Bangladesh Power Development Board was signed last month in Kathmandu. The agreement had been delayed by a couple of months due to the political crisis in Bangladesh.


The supply facilitated by India is particularly important for Bangladesh as it grapples with continued power shortages. “This green energy initiative promises industrial growth and regional prosperity,” said Khadka. 


NEA plans to sell electricity to Bangladesh annually during the rainy season, from June 15 to Nov 15. In the beginning, Nepal will export 40 MW of electricity generated in the country to Bangladesh via India. The expected export is 1,44,000 megawatt-hours and NEA estimates earnings of $9.2 million over the five months, Nepal media reported.