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Bangladesh likely to purchase 40 MW electricity from Nepal within a month to be transmitted via India

BNE News Desk , July 10, 2024
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Katmandu: Nepal officials announced on Tuesday that they are expected to export 40 MW of hydroelectricity to Bangladesh in the coming month, marking the first time the country will be selling electricity to a non-Indian country. NEA officials have stated that the BPDB has sent a letter to the NEA, requesting the initiation of a power trade agreement signing process.

Kulman Ghising, NEA's managing director, has ensured that the essential measures have been implemented to begin exporting electricity to Bangladesh during the upcoming monsoon season.

The Bangladesh cabinet has given the green light to a plan to bring in 40 MW of power from Nepal. Bangladesh will cover the cost of using India's transmission infrastructure to deliver power to the 400kV substation in Muzaffarpur, India. In January 2024, the BPDB invited bids to buy 40 MW of electricity from Nepal for a period of five years through a three-way agreement involving the governments of Bangladesh, India, and Nepal.

The NEA's bid for selling electricity has been approved by the Bangladeshi authority. According to NEA's spokesperson Chandan Kumar Ghosh, the trilateral agreement between NEA, NTPC Vidyut Nigam Ltd of India, and BPDB of Bangladesh will enable the export of electricity from Nepal to Bangladesh.

Ghosh noted that the finalization of the agreement will happen shortly, as all three organizations have reached an agreement on the draft of the tripartite electricity sales agreement. The Dhalkebar-Muzaffarpur transmission line will serve the same purpose.

The NEA had already turned in all required paperwork for the bid, which included the selling price for electricity. The BPDB has notified the NEA of its plan to move forward with the signing of a power trade deal. He stated that the BPDB will provide the NEA with a preliminary version of the power purchase contract.

On April 17, Bangladesh Foreign Secretary Masud Bin Momen highlighted the importance of quickly finalizing the tripartite power agreement with Bangladesh-India-Nepal, which will enable Dhaka to import power from Nepal. Nepal will provide Bangladesh with a maximum of 500 MW of hydropower through the use of India's transmission line under the power trade agreement. During the third round of Foreign Office Consultations (FOC) held in April in Kathmandu, Nepal and Bangladesh examined all aspects of their mutual relations.

During his two-day visit to Nepal, External Affairs Minister S Jaishankar signed a long-term deal for exporting 10,000 MW of power to India and together launched three cross-border transmission lines. Nepal has devised an energy development plan to generate 28,000 MWs of electricity within the coming 12 years, with a specific goal of exporting 15,000 MWs to various nations, including India, as reported by Nepali media at the time.