Big boost to sub-regional power connectivity with supply from Nepal to Bangladesh via Indian power grid


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Big boost to sub-regional power connectivity with supply from Nepal to Bangladesh via Indian power grid
Image for representational purposes.
This follows an agreement between NTPC Vidyut Vyapar Nigam, Nepal Electricity Authority and Bangladesh Power Development Board
In a major boost to regional power connectivity, Nepal transmitted power to Bangladesh using the Indian grid on Friday (November 15, 2024). This historic occasion marks the first trilateral power transaction which has been carried out through the Indian grid, India’s Ministry of External Affairs (MEA) said. 

The power flow was jointly inaugurated by Manohar Lal, Union Minister for Power and Housing & Urban Affairs, Government of India, Md. Fouzul Kabir Khan, Adviser, Ministry of Power, Energy and Mineral Resources, Government of Bangladesh and Dipak Khadka, Minister of Energy, Water Resources and Irrigation, Government of Nepal. The virtual event was hosted by the Ministry of Energy, Water Resources and Irrigation, Government of Nepal.

India had announced its decision to facilitate the first trilateral power transaction from Nepal to Bangladesh, through Indian grid with an export of upto 40 MW of power, during the visit of the former Nepal Prime Minister Pushpa Kamal Dahal ‘Prachanda’ to India from May 31-to June 3, 2023 . 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 on October 3, 2024 in Kathmandu. “The start of this power flow from Nepal to Bangladesh through India is expected to boost sub-regional connectivity in the power sector,” the MEA said.

As per the agreement, Nepal will transmit the energy to India through the 400KV Dhalkebar-Muzaffarpur cross-border transmission line before India transmits an equivalent quantity to Bangladesh. 

Robust collaboration in the power sector is a key pillar of the India's bilateral partnership with Nepal as well as Bangladesh. 

Earlier this year, External Affairs Minister S Jaishankar announced that Nepal would export nearly 1,000 MW of electricity to India. He went on to describe the development, made public after a meeting with his Nepalese counterpart Arzu Rana Deuba in New Delhi on August 19, 2024, as a "new milestone".

Foreign Minister Deuba, on her part, thanked the Indian government for the latest approval of another 251 MW of power exports from 12 hydropower projects in Nepal to India, taking the total figure to 941 MW so far. She also expressed confidence that power sector cooperation between the two nations would achieve greater heights in the future.

Similarly, India-Bangladesh power sector cooperation has become stronger in recent years, with Bangladesh importing power from Indian plants. Additionally, Unit II of the Maitree Super Thermal Power Plant was made operational in Khulna, Bangladesh and was inaugurated in October 2023. Unit I of the power plant was unveiled in November 2022. 

The Maitree Super Thermal Power Project under Indian Concessional Financing Scheme loan of USD 1.6 billion, is a 1320 MW (2x660) Super Thermal Power Plant (MSTPP). The project has been implemented by the Bangladesh-India Friendship Power Company (Private) Limited (BIFPCL), which is a 50:50 Joint Venture company between India's NTPC Ltd and Bangladesh Power Development Board (BPDB). 
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