Nepal, India, and Bangladesh Sign Historic Electricity Trade Agreement

Nepal, India, and Bangladesh signed a tripartite agreement enabling Nepal to export surplus electricity to Bangladesh via Indian transmission lines during the rainy season. This deal marks the first phase where Nepal will export 40 MW of hydroelectricity, generating an annual income of approximately USD 9.2 million.

Nepal, India, and Bangladesh have reached a landmark tripartite agreement on cross-border electricity trade, officials reported. The deal will allow Nepal to export its surplus electricity to Bangladesh annually, using India's transmission lines during the rainy season from June 15 to November 15.

In the agreement's first phase, Nepal is set to export 40 MW of hydroelectricity to Bangladesh through Indian territory. The agreed rate is 6.4 cents per unit, potentially generating Nepal a revenue of around USD 9.2 million each year, according to figures from the Nepal Electricity Authority (NEA).

Energy ministers and key officials from the three nations gathered in Kathmandu for the signing of the agreement, postponed from its initial scheduled date in July due to political changes in Bangladesh. This strategic trade partnership is facilitated via the Dhalkebar-Muzaffarpur 400 KV transmission line.

(With inputs from agencies.)