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Tripartite agreement soon to supply electricity from Nepal to Bangladesh

A formal agreement to supply electricity from Nepal to Bangladesh via India is expected to be signed within a couple of weeks, sources at the NEA said

New electricity tariff rules

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Press Trust of India Kathmandu

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An understanding has been reached in principle for the supply of electricity from Nepal to Bangladesh via an Indian transmission line and a formal agreement between the three nations will be signed soon on this, according to officials at the Nepal Electricity Authority (NEA).

A verbal understanding has been reached among the three countries to export electricity from Nepal to Bangladesh, according to Suresh Bhattarai, spokesperson at the NEA.

There has been an understanding to export 40 MW of electricity from Nepal to Bangladesh in the first phase, he added. A formal agreement to this effect will take place very soon, according to Bhattarai.

 

Bangladesh is ready to purchase 40 MW (megavolt) of electricity from Nepal in the beginning, according to sources at the NEA.

A formal agreement to supply electricity from Nepal to Bangladesh via India is expected to be signed within a couple of weeks, sources at the NEA said.

Power Purchase Document has been agreed between Nepal and Bangladesh but the tariff and trade margin are yet to be finalized, said Prabal Adhikakry, a senior official at the NEA.

Though a formal agreement is yet to be signed among the three countries, PPA and other terms are agreed upon through email, he made it clear.

According to Bhattarai India is positive regarding supplying electricity from Nepal to Bangladesh through using its transmission line.

However, without India's consent this cannot take place, he pointed out.

The supplying 40 MW of electricity from Nepal to Bangladesh via India is not substantial in volume but it is significant because it holds symbolic value, officials here said.

The agreement to export Nepal's electricity to the third country is itself a significant one, said Ganesh Karki, President of the Independent Power Producers' Association.

Some pending issues regarding the agreement are expected to be finalised shortly, the sources said. Bangladesh is planning to purchase 9,000 MW of electricity from Nepal in the long run.

During the fifth meeting of the secretary-level Joint Steering Committee on energy cooperation between Nepal and Bangladesh in May, the two sides agreed to start trading of power by taking India on board.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Aug 17 2023 | 10:50 PM IST

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