First-ever trilateral power transaction in South Asia marks major step in regional energy cooperation
Nepal has officially started exporting 40 megawatts (MW) of electricity to Bangladesh using the Indian power grid, marking a historic milestone in South Asia’s energy collaboration. The cross-border supply signifies the region’s first trilateral power transaction, with electricity transmitted via India’s 400-kV Muzaffarpur-Baharampur-Bheramara transmission corridor, reported livemint.com.
The energy trade began after a virtual inauguration in November 2023, jointly attended by India’s Union Minister for Power and Housing & Urban Affairs Manohar Lal, Nepal’s Minister for Energy, Water Resources and Irrigation Dipak Khadka, and Fouzul Kabir Khan, Adviser at Bangladesh’s Ministry of Power, Energy and Mineral Resources.
Announcing the development on X (formerly Twitter), Khadka stated, “We’ve begun exporting 40MW to Bangladesh via the India Grid, unlocking a 5,000MW market, and 80MW to Bihar, marking Nepal’s entry into the international energy market.” He emphasized that the move showcases Nepal’s energy surplus and commitment to regional power security.
Nepal exports 40MW power to Bangladesh through India, unlocking major market and strengthening regional energy security
The trilateral power deal stems from an agreement made during the visit of Nepal’s former Prime Minister Pushpa Kamal Dahal ‘Prachanda’ to India in 2023, when the Indian government agreed to facilitate the transmission. Following this, a power sales agreement between NTPC Vidyut Vyapar Nigam (India), Nepal Electricity Authority (NEA), and Bangladesh Power Development Board (BPDB) was signed on October 3, 2024, in Kathmandu.
India, which already has bilateral energy links with Nepal, Bhutan, Bangladesh, and Myanmar, is also in talks with Sri Lanka for similar connectivity. However, this marks the first instance where its grid is being used to transmit electricity between two other countries, reinforcing its role as a regional energy facilitator.
In April 2025, during a visit to Nepal, Union Minister Manohar Lal reviewed strategic energy initiatives and progress on the 900MW Arun-3 Hydroelectric Project being developed by India’s SJVN Ltd. A separate memorandum of understanding (MoU) was also signed for two key cross-border transmission lines: 400kV Inaruwa (Nepal)–New Purnea (India) and 400kV Dododhara (Nepal)–Bareilly (India), which are expected to significantly enhance energy exchange and stability in the region.
