In a landmark move, India, Nepal, and Bangladesh signed a tripartite power sales agreement (PSA), facilitating cross-border electricity trade. This agreement allows Nepal to export 40 MW of electricity to Bangladesh through India's power grid, marking the first such cross-border energy trade pact in the region. The electricity export will take place from June 15 to November 15.

The deal was signed between the Nepal Electricity Authority (NEA), the Bangladesh Power Development Board (BPDB), and NTPC Limited, India's top power generation company. The Dhalkebar-Muzaffarpur 400 kV transmission line will be used for the export, with Muzaffarpur as the metering point.

Nepal has been supplying electricity to India for three years, but this agreement officially opens the route for power exports to Bangladesh. The rate per unit of electricity is set at 6.4 cents, generating an estimated annual revenue of $9.2 million for Nepal.

Present at the signing ceremony were Nepal’s Minister for Energy, Water Resources, and Irrigation, Dipak Khadka; Bangladesh’s Forest, Environment, Climate Change, and Water Resources Minister Syeda Rizwana Hasan; and Indian Ambassador to Nepal Naveen Srivastava.

Originally scheduled for July, the signing was delayed due to political changes in Bangladesh. However, the agreement now sets a precedent for regional cooperation in the energy sector, strengthening ties between the three nations.