When it comes to exporting electricity to Bangladesh is concerned, India had earlier said that it would allow passage for exporting 50MW of power to Bangladesh provided Nepal proposes the project whose power will be sold to Bangladesh.
The Nepal Electricity Authority (NEA) has recently proposed to the Indian side that it seeks to sell the power generated from the Likhu-4 Hydropower Project to Bangladesh. “This can be accomplished during Prime Minister Dahal’s visit to India,” the energy ministry official said. Nepal and Bangladesh in August last year had decided to request the southern neighbor to allow the export of 40-50 MW of Nepali electricity to Bangladesh in the initial phase by using the high-voltage Baharampur-Bheramara cross-border power transmission links. Nepali officials said that even though the export of 50MW of power from Nepal to Bangladesh would largely be a symbolic move, it would be a milestone for setting the ground for trilateral energy cooperation between Nepal, India, and Bangladesh. The energy-hungry Bangladesh has also been urging India for the pathway to import hydropower from Nepal. As Indian territory lies between the two countries, it is necessary that the southern neighbor facilitates the power trade between Nepal and Bangladesh. Currently, talks are going on between Nepali officials and India's NHPC Limited for the latter's involvement in the development of the Phukot Karnali Hydropower Project. The government-owned Vidyut Utpadan Company Limited (VUCL) is developing the project which is located in the Sannitriveni Rural Municipality of Kalikot district. As per the understanding reached with India, VUCL and NHPC will now jointly develop the project. Once the formal agreement is signed, the construction of the project will start by establishing a joint venture company between VUCL and NHPC. During the Energy Secretary-Level Joint Steering Committee meeting held in India last month, it was decided that the NHPC will join the VUCL as a co-developer to develop the project. An energy ministry source earlier had told the Annapurna Express that a draft Memorandum of Understanding was prepared during the meeting. “Once it is approved by the Cabinet, a formal MoU will be signed,” said an official of the ministry. According to energy ministry sources, NHPC will have a 51 percent stake in the joint venture. It has been proposed that Nepal will get 21.9 percent free electricity from the project. NHPC will have to arrange loan investments and guarantee the market for electricity generated from the project. VUCL received the license to develop the Phukot Karnali Hydropower Project in 2017. The company has already started the works including the acquisition of land. The company was looking for a foreign investment partner to take the project ahead. The Phukot Karnali will be the third hydropower project in Nepal in which the NHPC is involved. Last year, the company signed an MoU with Investment Board Nepal (IBN) to develop the 750 MW West Seti Project and 450 MW SR-6 Project. The Indian company has already received a survey license for the West Seti and SR-6 Joint Storage Hydroelectric Project.
