In a historic move for regional energy cooperation, India enabled the first-ever trilateral power transaction between Nepal and Bangladesh on Thursday. The event, inaugurated virtually by Union Minister for Power and Housing & Urban Affairs Manohar Lal, brought together prominent leaders from all three countries. Md. Fouzul Kabir Khan, Adviser to Bangladesh’s Ministry of Power, Energy and Mineral Resources and Dipak Khadka, Nepal’s Minister of Energy, Water Resources, and Irrigation joined him. This groundbreaking arrangement allows Nepal to export electricity to Bangladesh through India’s power grid.

This cross-border initiative was initially proposed by the Government of India earlier this year. During former Nepalese Prime Minister Pushpa Kamal Dahal ‘Prachanda’s’ visit to India from May 31 to June 3, 2023, both India and Nepal pledged to strengthen sub-regional cooperation. Energy sector collaboration was a key focus, with leaders from both countries supporting increased interconnectivity to benefit all regional stakeholders.

The agreement has since progressed, with a tripartite power sales agreement signed in Kathmandu on October 3, 2024. This deal, established between NTPC Vidyut Vyapar Nigam (India), the Nepal Electricity Authority and Bangladesh Power Development Board will facilitate the transfer of up to 40 megawatts of electricity from Nepal to Bangladesh through India’s transmission network.

The start of power transmission marks a milestone for the region, promoting increased connectivity and collaboration in the energy sector. Leaders from all three nations view this as a significant step toward stronger economic interlinkages that will drive mutual benefits, spur development, and support energy security across South Asia. This move aligns with the shared vision of sub-regional growth, with energy trade as a cornerstone for building deeper connections among the participating nations.