Union Minister for Power and Housing & Urban Affairs, Manohar Lal, jointly inaugurated the power flow from Nepal to Bangladesh, alongwith Fouzul Kabir Khan, Adviser, Ministry of Power, Energy and Mineral Resources, Government of Bangladesh and Dipak Khadka, Minister of Energy, Water Resources and Irrigation, Government of Nepal through a virtual event hosted by the Ministry of Energy, Water Resources and Irrigation, Government of Nepal. This historic occasion marks the first trilateral power transaction which has been carried out through the Indian grid, informed the Ministry of Power.

The Government of India had announced its decision to facilitate the first trilateral power transaction from Nepal to Bangladesh, through Indian grid with an export of upto 40 MW of power during the visit of the former Prime Minister of Nepal, Pushpa Kamal Dahal ‘Prachanda’ to India from 31 May to 3 June 2023 . During the visit, both sides had expressed their commitment towards greater sub-regional cooperation, including in the energy sector, which would lead to increased inter-linkages between the economies for mutual benefit of all stakeholders.

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Subsequently, a tripartite power sales agreement between NTPC Vidyut Vyapar Nigam, Nepal Electricity Authority and Bangladesh Power Development Board was signed on 3 October 2024 in Kathmandu.

The start of this power flow from Nepal to Bangladesh through India is expected to boost sub-regional connectivity in the power sector.