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India Enables First Trilateral Power Transfer from Nepal to Bangladesh

16 Nov 2024

In a major move to enhance regional energy collaboration, India enabled the first-ever power transfer from Nepal to Bangladesh, marking a historic trilateral transaction carried out through the Indian grid.

The virtual inauguration event was jointly by Union Minister for Power and Housing & Urban Affairs, Manohar Lal, alongside Bangladesh's Adviser to the Ministry of Power, Energy, and Mineral Resources, Md. Fouzul Kabir Khan, and Nepal's Minister of Energy, Water Resources, and Irrigation, Dipak Khadka.

The initiative, which allows Nepal to export up to 40 MW of power to Bangladesh via Indian transmission lines, outlines India’s commitment to fostering sub-regional cooperation. This power exchange was first announced during the visit of former Nepal Prime Minister Pushpa Kamal Dahal to India in June 2023, when both nations committed to strengthening their economic and energy partnerships for mutual benefit.

The agreement was formalised with the signing of a tripartite power sales contract on October 3, 2024, in Kathmandu, between NTPC Vidyut Vyapar Nigam, the Nepal Electricity Authority, and the Bangladesh Power Development Board. The agreement establishes a new benchmark for energy collaboration in South Asia and is anticipated to strengthen economic ties and improve sub-regional connectivity within the power sector.

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