In a landmark development for regional energy cooperation, Nepal has commenced supplying electricity to Bangladesh through the Indian grid, marking the inauguration of the first trilateral power transaction in South Asia.
The event was held virtually and inaugurated by Union Minister for Power and Housing & Urban Affairs, Manohar Lal, alongside Bangladesh’s Md. Fouzul Kabir Khan, who is the adviser to the Ministry of Power, Energy, and Mineral Resources, and Nepal’s Minister of Energy, Water Resources and Irrigation is Mr. Dipak Khadka. The historic occasion underscores a deepening commitment to sub-regional energy integration and cooperation.
The initiative originates from a decision announced during the visit of former Nepalese Prime Minister Pushpa Kamal Dahal ‘Prachanda’ to India from May 31 to June 3 last year. At the time, India pledged to facilitate a trilateral power transaction, enabling Nepal to export up to 40 MW of electricity to Bangladesh using India’s energy infrastructure. This commitment was part of broader efforts to enhance sub-regional cooperation and foster inter-linkages between economies in South Asia for mutual benefits.
To operationalize this vision, a tripartite power sales agreement was signed on October 3 this year, in Kathmandu. The agreement brought together the NTPC Vidyut Vyapar Nigam (NVVN) from India, the Nepal Electricity Authority (NEA), and the Bangladesh Power Development Board (BPDB), outlining the terms for the historic power trade.
The commencement of power flow is expected to significantly boost connectivity within the region’s energy sector. It exemplifies how coordinated initiatives and infrastructure sharing can create synergies for sustainable development. This milestone also aligns with the shared vision of India, Nepal, and Bangladesh for advancing energy security, economic integration, and regional stability.
With Nepal’s hydropower potential, India’s robust grid infrastructure, and Bangladesh’s growing energy needs, the trilateral arrangement is poised to act as a blueprint for future cooperative projects in the region, promoting sustainable energy and economic resilience.
