India on Thursday (1 June) gave its nod to Bangladesh and Nepal's request to allow them to conduct power trade using its transmission network, reports Business Standard.
The decision was made known during talks between India's Prime Minister Narendra Modi and his Nepalese counterpart Pushpakamal Dahal 'Prachanda', officials said.
"Last year, we adopted a landmark vision document for cooperation in the power sector," Modi said adding, "Taking this forward, a long-term Power Trade Agreement has been signed between India and Nepal today,"
Bangladesh and Nepal held Joint Working Group and Joint Steering Committee meetings in Dhaka on 15-16 May to discuss taking India in a tri-nation agreement regarding power trade.
Nepal can only sell electricity to Bangladesh through India due to the absence of a direct geographical connection between Nepal and Bangladesh.
The proposed transmission routes include Anarmari (Nepal) to Panchagarh (Bangladesh), spanning a total length of 49km. Should this transmission line be constructed, it would require utilizing 24km of Indian territory, as reported by the Power Grid Company of Bangladesh Limited during a presentation.
Another proposed route is from Anarmari (Nepal) to Thakurgaon (Bangladesh), covering a distance of 83km. Constructing the transmission line along this alignment would necessitate the utilisation of 33km of Indian territory.
Apart from the dedicated transmission lines, Nepal is also considering enhancing the capacity of existing transmission infrastructure to facilitate increased power trade between Nepal and Bangladesh through India.