A trilateral power-sharing agreement between India, Nepal, and Bangladesh officially began on Friday, marking the start of electricity supply from Nepal to Bangladesh via an Indian grid. This agreement represents the first-ever power transaction conducted through the Indian grid, demonstrating enhanced regional cooperation.
The agreement was virtually inaugurated by key ministers from the three countries: Union Minister for Power and Housing & Urban Affairs Manohar Lal from India, Md. Fouzul Kabir Khan, Adviser to the Ministry of Power, Energy and Mineral Resources of Bangladesh, and Dipak Khadka, Nepal’s Minister of Energy, Water Resources, and Irrigation. The power transaction allows the export of up to 40 MW of electricity from Nepal to Bangladesh.
The agreement was a result of discussions during former Nepalese Prime Minister Pushpa Kamal Dahal ‘Prachanda’s visit to India in May 2023. The move aims to enhance sub-regional cooperation, particularly in energy, and strengthen economic interlinkages. A formal power sales agreement between NTPC Vidyut Vyapar Nigam, Nepal Electricity Authority, and Bangladesh Power Development Board was signed in October 2024, paving the way for this power flow, which is expected to improve regional connectivity in the energy sector.