For the first time in history, Nepal is set to export electricity to a third country, Bangladesh, through India. This landmark tripartite agreement- the India-Bangladesh-Nepal Electricity Deal, to be signed on July 28 in New Delhi, marks a significant development in regional energy cooperation. The deal involves the Nepal Electricity Authority (NEA), the Bangladesh Power Development Board (BPDB), and India’s NTPC Vidyut Vyapar Nigam Ltd (NVVN).
The agreement will see Nepal supplying 40 MW of hydroelectric power to Bangladesh annually from June 15 to November 15. This power will be transmitted from Nepal to India via the 400kV Dhalkebar-Muzaffarpur cross-border transmission line. India will then transfer the equivalent amount of electricity to Bangladesh, with the delivery point being a 400kV substation in Muzaffarpur, India. Bangladesh will cover the transmission charges for using India’s infrastructure.
Nepal’s Minister for Energy, Water Resources and Irrigation, Dipak Khadka, India’s Power Minister, Manohar Lal Khattar, and Bangladesh’s Power, Energy and Mineral Resources Minister, Nasrul Hamid, will be present to witness the signing ceremony.
Chandan Kumar Ghosh, spokesperson for the NEA, highlighted the significance of this deal, emphasizing its role in diversifying Nepal’s energy exports beyond India. The agreement also comes on the heels of a long-term deal signed in January, where Nepal agreed to export 10,000 MW of power to India, underscoring the growing energy collaboration in the region.
The NEA estimates that Nepal will earn approximately Rs 330 million from this electricity sale to Bangladesh. This India-Bangladesh-Nepal electricity deal is a major step forward in regional energy cooperation and marks a new chapter in Nepal’s energy export strategy.