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First power transmission from Nepal to Bangladesh via Indian grid begins

First power transmission from Nepal to Bangladesh via Indian grid begins
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First power transmission from Nepal to Bangladesh via Indian grid begins

  • A trilateral power-sharing agreement between India, Nepal, and Bangladesh came into effect on Friday, marking the start of electricity supply from Nepal to Bangladesh via an Indian grid.

Highlights:

  • The first-ever trilateral power-sharing agreement among India, Nepal, and Bangladesh came into effect on Friday. This milestone marks the beginning of electricity supply from Nepal to Bangladesh using India's grid, a significant development in sub-regional energy cooperation.

Key Features of the Agreement

  • Participants and Facilitation:
    • Nepal will export up to 40 MW of electricity to Bangladesh through the Indian power grid.
    • India acts as the transit country, facilitating the transaction.
  • Inauguration:
    • The initiative was virtually inaugurated by:
    • Manohar Lal, India’s Union Minister for Power and Housing & Urban Affairs.
    • Md. Fouzul Kabir Khan, Adviser to Bangladesh’s Ministry of Power, Energy, and Mineral Resources.
    • Dipak Khadka, Nepal’s Minister of Energy, Water Resources, and Irrigation.

Origins and Agreement Framework

  • Announcement:
    • The decision to facilitate this power transaction was first announced during the visit of Nepal’s former Prime Minister Pushpa Kamal Dahal ‘Prachanda’ to India in June 2023.
  • Tripartite Agreement:
    • Signed on October 3, 2024, in Kathmandu between:
    • NTPC Vidyut Vyapar Nigam (India).
    • Nepal Electricity Authority (Nepal).
    • Bangladesh Power Development Board (Bangladesh).

Significance of the Agreement

  • Energy Connectivity:
    • This marks the first instance of a trilateral power transaction in the region, fostering cross-border energy collaboration.
  • Strengthening Sub-Regional Ties:
    • Enhances interlinkages between the economies of India, Nepal, and Bangladesh.
    • Creates a framework for broader regional energy cooperation.
  • Economic and Developmental Benefits:
    • Boosts sub-regional connectivity in the power sector, benefiting stakeholders across all three countries.
    • Supports the long-term vision of energy security and economic integration in South Asia.

Prelims Takeaways

  • NTPC Vidyut Vyapar Nigam

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