India, Nepal, and Bangladesh have signed a trilateral agreement to export 40 megawatts of electricity from Nepal to Bangladesh via India’s power grid. The tripartite agreement signed in Kathmandu yesterday enables Nepal to sell electricity to Bangladesh for the first time. Nepal has only been exporting electricity to India.
As per the agreement, Bangladesh will now import 40 megawatts of electricity from Nepal. The Indian side has also been involved in the trade deal, as Nepal’s electricity will be transmitted to Bangladesh through the transmission infrastructure on the Indian territory.
For now, Nepal will transmit the energy to India through the 400 KV Dhalkebar-Muzaffarpur cross-border transmission line before India transmits the equivalent to Bangladesh.
The Nepal Electricity Authority (NEA) will calculate the quantum of exported energy at the Muzaffarpur point. The NEA estimates earnings of around 330 million rupees for the country through the sale.
A Nepal-Bangladesh meeting also agreed to develop the Sunkoshi-3 hydropower project in a collaborative participatory modality between Nepal, Bangladesh, and India. They have decided to finalise a joint venture agreement in the next meeting.
The two sides have also agreed to conduct a technical and financial feasibility study of the proposed cross-border transmission line for energy trade between Nepal and Bangladesh.
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