Bangladesh is making efforts to unite Bangladesh, Bhutan, and India under a single platform for electricity trade. As part of this initiative, Bangladesh has proposed a joint venture with India to build a hydroelectric power station in Bhutan. India has agreed to the proposal and requested a formal proposal. In a recent meeting between the power secretaries of Dhaka and Delhi, Bangladesh offered joint investment in hydropower generation in Bhutan.
This marks the first time India has shown interest in Bangladesh’s proposal, as previous attempts were unsuccessful. Bangladesh has previously entered into a joint assistance agreement with Nepal in the power sector but not with Bhutan. The amended policy of India now allows its neighboring countries to use Indian territory for power trade, removing the previous requirement of a public-private partnership. The trilateral agreement with Nepal is also set to be signed. This collaboration with Bhutan and Nepal in hydropower will benefit Bangladesh by providing cost-effective and uninterrupted electricity without relying on traditional fuel sources.