Prime Minister Manmohan Singh joined the inauguration of the cross-country transmission line and the laying of the foundation stone for the Maitri Thermal Power Project through video conferencing, while his Bangladeshi counterpart Sheikh Hasina was present at a sub-station in western Bheramara, about 240 km from here.
"Today's inauguration represents an important milestone in connecting our two countries and the broader region through a growing wave of cross-border energy links and trade," Singh said.
Hasina, who was joined by India's New and Renewable Energy Minister Farooq Abdullah at the sub-station, said, "Such cooperation would pave the way to embark on more ambitious projects to the benefit of both the countries.
"The inter-grid connectivity is part of an immediate solution which would go a long way to alleviate the power deficit in Bangladesh."
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The formal opening of the joint transmission line came a week after India launched a test transmission of electricity under an agreement to export 250 MW to its energy-starved neighbour.
Bangladesh will import 250 MW from the Indian government's "unallocated quota" and another 250 MW will be supplied by an Indian private firm.
The groundbreaking for Bangladesh's biggest-ever joint venture coal-run power project came against the backdrop of protests by environmentalists, who fear that the project near the Sundarbans, also shared by India, would endanger the world's largest mangrove forest.