Nepal-Bangladesh Power Trade Via Indian Grid Begins With First Trilateral Transaction

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New Delhi: Union Minister for Power, Manohar Lal on Friday jointly inaugurated the flow of power from Nepal to Bangladesh through the Indian grid along with Md. Fouzul Kabir Khan, Advisor, Ministry of Power, Bangladesh and Dipak Khadka, Nepal’s Minister of Energy, in a virtual event hosted by Nepal's Ministry of Energy, Water Resources and Irrigation.

This historic occasion marks the first trilateral power transaction which has been carried out through the Indian grid. The start of this power flow from Nepal to Bangladesh through India is expected to boost sub-regional connectivity in the power sector, according to an official statement.

"Nepal's power will now reach Bangladesh via the Indian grid, marking the first trilateral power transaction," the Ministry of External Affairs (MEA) posted on X. "This landmark development strengthens sub-regional connectivity and sets a new benchmark in the South Asian power sector," it added.

The Government of India had announced its decision to facilitate the first trilateral power transaction from Nepal to Bangladesh, through Indian grid with an export of up to 40 MW of power during the visit of the former Prime Minister of Nepal, Pushpa Kamal Dahal 'Prachanda' to India from May 31 to June 3, last year.

During the visit, both sides had expressed their commitment towards greater sub-regional cooperation, including in the energy sector, which would lead to increased inter-linkages between the economies for mutual benefit of all stakeholders.

Subsequently, a tripartite power sales agreement between NTPC Vidyut Vyapar Nigam, Nepal Electricity Authority and Bangladesh Power Development Board was signed in Kathmandu, last month.

As per the Nepal Electricity Authority (NEA) officials, the rate per unit of electricity has been fixed at 6.4 cent. Nepal is expected to make an annual income of around $9.2 million from the export of electricity to Bangladesh via the Dhalkebar-Muzaffarpur 400 kV transmission line, with the metering point in Muzaffarpur.

In December last year, Bangladesh's Cabinet Economic Affairs Committee had approved the import of 40 megawatts of electricity from Nepal. The pact was earlier scheduled to be signed in July but was postponed due to political turmoil and a change of government in Bangladesh.