Bangladesh, India, and Nepal formally started power transactions from Nepal to Bangladesh via the Indian system on Friday, marking a major milestone for regional cooperation. In a virtual event, Bangladesh’s Power, Energy, and Mineral Resources Adviser Md. Fouzul Kabir Khan, Nepalese Minister for Energy, Water Resources, and Irrigation Dipak Khadka, and Indian Minister for Power and Housing and Urban Affairs Manohar Lal commemorated the historic start of this trilateral power flow.
This historic deal, acknowledged as the first of its sort made possible by the Indian grid, shows a dedication to improved sub-regional cooperation in the energy sector. The announcement was made during the June 2023 visit of former Nepal Prime Minister Pushpa Kamal Dahal “Prachanda” to India to allow the export of up to 40 megawatts (MW) of electricity. All three countries’ leaders underlined their commitment to deeper economic ties for the benefit of all parties involved.
In order to formalise this proposal, NTPC Vidyut Vyapar Nigam, the Nepal Electricity Authority, and the Bangladesh Power Development Board signed a tripartite power sales agreement in Kathmandu on 3rd October 2024. It is expected that this agreement will encourage improved connection in the power industry.
An important section of Bangladesh’s economy, the ready-made garment (RMG) industry, may be significantly impacted by the start of this power transaction. For clothing producers, improved access to electricity might mean lower energy costs and more reliable power supplies. In an industry where production processes rely significantly on electricity, this is crucial.
