With Indian assurance of allowing power export from Nepal to Bangladesh, the Nepali authority is planning to export the electricity generated from Likhu-4 Hydropower Project to Bangladesh. According to a senior official at the Ministry of Energy, Water Resources and Irrigation, preparations have begun for project selection after the Indian government agreed to allow Nepal to use its transmission infrastructure to export 50 megawatts of electricity to Bangladesh. During the 10th joint secretary-level Joint Working Group and the secretary-level Joint Steering Committee meeting held in Jaipur, India on February 17-18, India agreed to grant its approval once Nepal submits the proposal along with the project whose power will be sold to Bangladesh.

According to Energy Ministry officials, India promised to give approval according to the Indian government's Electricity Import-Export Directive.

The Nepali side has proposed that the electricity from the Likhu-4 project could be exported to Bangladesh. According to Madhu Bhetuwal, spokesperson of the Energy Ministry, Indian assurance is very important symbolically. The Indian decision, according to Nepali officials will be a milestone for opening the door for trilateral cooperation in energy trade among Nepal, India, and Bangladesh as well as regional trade in the long run. Nepal and Bangladesh in August last year had decided to request the southern neighbor to allow the export of 40-50MW of Nepali electricity to Bangladesh in the initial phase by using the high-voltage Baharampur-Bheramara cross-border power transmission link. Earlier, in December last year, the Indian side had told Nepali officials that electricity export from Nepal to Bangladesh through the Baharampur-Bheramara cross-border power transmission line was not immediately possible. Nepali officials were told that there was a transmission constraint in the Baharampur-Bheramara transmission line. India's cooperation is vital for power trade between Nepal and Bangladesh, as there is no separate dedicated transmission line to export electricity between Nepal and Bangladesh. According to Nepali officials, since the Likhu-4 project is a joint venture between Nepali and Indian companies and an Indian contractor was involved in the construction, the southern neighbor will give the green signal to export power from this project. The Likhu-4 Project was developed by Nepal's Triveni Group and India's Bhilwara Energy. Located on the border of Okhaldhunga and Ramechhap districts, the project started its commercial production last year. Bangladesh has been keen on importing electricity from Nepal as well as developing hydropower projects in Nepal on a joint-venture model in recent years. The 683 MW Sunkoshi 3 hydropower project is one such project that Bangladesh is looking to develop under a joint venture arrangement.