India has permitted Bangladesh and Nepal to conduct power trade using its transmission network, as confirmed during talks between the Indian Prime Minister and Nepalese Prime Minister Prachanda’. This decision follows a long-term Power Trade Agreement signed between India and Nepal. The absence of a direct geographical connection between Nepal and Bangladesh means that Nepal can only sell electricity to Bangladesh through India.
Two proposed transmission routes have been discussed: one from Anarmari (Nepal) to Panchagarh (Bangladesh) with a total length of 49km, requiring 24km of Indian territory, and another from Anarmari (Nepal) to Thakurgaon (Bangladesh) spanning 83km and necessitating the use of 33km of Indian territory. Additionally, Nepal is considering enhancing the capacity of existing transmission infrastructure to facilitate increased power trade between Nepal and Bangladesh through India. This development will provide new opportunities for power trade and cooperation among the three nations.