The first-ever trilateral power transaction in South Asia, inaugurated on November 15, 2024, marks a milestone in regional energy cooperation. This initiative enables Nepal to export electricity to Bangladesh via India’s grid, strengthening sub-regional energy ties and highlighting India’s role as a key regional energy hub.
On November 15, 2024, South Asia witnessed a landmark event in energy cooperation with the initiation of the first trilateral power trade, allowing Nepal to export electricity to Bangladesh through India’s grid. This historic occasion, celebrated via a virtual event, advances sub-regional connectivity and reinforces energy ties between the three nations.
India’s Power Minister, Manohar Lal, joined Md. Fouzul Kabir Khan of Bangladesh and Nepal’s Energy Minister, Dipak Khadka, to inaugurate the initiative, which enables power transmission from Nepal to Bangladesh using Indian infrastructure. The Ministry of External Affairs (MEA) emphasized, “This historic occasion marks the first trilateral power transaction, which has been carried out through the Indian grid.”
The project stems from a June 2023 agreement during Nepalese Prime Minister Pushpa Kamal Dahal’s visit to India, where energy cooperation was prioritized. A tripartite sales contract signed in October 2024 between Nepal Electricity Authority (NEA), the Bangladesh Power Development Board (BPDB), and NTPC Vidyut Vyapar Nigam (NVVN), set the framework for exporting 40 MW of Nepalese power to Bangladesh.
While Nepal has been supplying electricity to India since 2021, Bangladesh becomes the first third-country recipient. As per MEA, “The Government of India had announced its decision to facilitate the first trilateral power transaction from Nepal to Bangladesh through the Indian grid.”
Using Indian infrastructure, Bangladesh pays transmission fees and trade margins to NVVN. This collaboration not only benefits Bangladesh and Nepal but also reinforces India’s role as a regional energy hub, paving the way for deeper integration and sustainable development across South Asia.
You must be logged in to post a comment.
Stay ahead in the dynamic world of trade and commerce with India Business & Trade's weekly newsletter.