Kathmandu: A tripartite power trade agreement between Nepal, India, and Bangladesh was signed on Thursday in Kathmandu, enabling Nepal to export 40 megawatts (MW) of electricity to Bangladesh using Indian infrastructure.

The agreement was signed by Nepal Electricity Authority (NEA) Executive Director Kulman Ghising, Bangladesh Power Development Board Chairperson Mohammad Rezaul Karim, and Renu Narang, Chief Executive Officer of India’s NVVN (NTPC Vidyut Vyapar Nigam). The ceremony was attended by Nepal's Energy Minister Dipak Khadka and Bangladesh's Minister for Forest, Environment, Climate Change, and Water Resources Syeda Rizwana Hasan.

Under the agreement, the NEA will supply electricity to India’s NVVN, which will then transmit the power to Bangladesh through the 400 kV trans-border transmission line between Nepal and India. The power will be exported from Nepal's Trishuli Hydropower Project (25 MW) and Chilime Hydropower Project (22 MW). The Indian government has already given the green light for the export, which will take place for five months, from June 15 to November 15, during the monsoon season.

The agreement marks a major step in regional energy cooperation. A total of 144,000 megawatt-hours of electricity will be exported over the five months, with NEA selling the power at Rs 9.30 per unit.

Additionally, discussions are underway for further collaborative efforts, including the development of the 680-MW Sunkoshi Reservoir-based Hydropower Project, a joint venture between Nepal, Bangladesh, and India. A separate agreement for the project's development is expected to be finalized soon, further solidifying energy ties between the three nations.