A ‘landmark’ in sub-regional energy cooperation

Indian Prime Minister Narendra Modi has hailed the export of electricity from Nepal to Bangladesh via the Indian grid as a landmark in sub-regional energy cooperation. 

Speaking at a joint press conference with Bangladesh Prime Minister Sheikh Hasina in New Delhi on Saturday, Modi emphasized that the swift implementation of such large-scale initiatives in multiple areas within just one year reflects the dynamic pace and scope of bilateral relations.

Last year, Nepal and India signed a long-term power trade agreement, which included India's consent to facilitate the sale of Nepali electricity to Bangladesh. Officials from Nepal and Bangladesh are currently finalizing the modalities of this agreement.

The joint statement underscored the commitment to expanding power and energy collaboration and developing intra-regional electricity trade. This includes competitively-priced power generated from clean energy projects in India, Nepal, and Bhutan, transmitted through the Indian electricity grid. To support this initiative, India will expedite the construction of a 765 kV high-capacity Katihar-Parbatipur-Bornagar interconnection, with suitable Indian financial assistance, to serve as a key anchor for grid connectivity.

Modi and Hasina also discussed regional issues, highlighting the potential of the India-Bangladesh relationship as a major anchor for regional and sub-regional integration under the BIMSTEC, SAARC, and IORA frameworks. They committed to working together on global platforms to advance their common interests, particularly those of the Global South.

As part of sub-regional connectivity initiatives, India will provide transit facilities for the movement of Bangladeshi goods to Nepal and Bhutan via the railway network. The two leaders also reiterated their commitment to the early operationalization of the BBIN Motor Vehicle Agreement to enhance sub-regional connectivity.

Recognizing the significant contribution of their partnership to regional peace, security, and stability, India and Bangladesh reaffirmed their commitment to a free, open, inclusive, secure, and rules-based Indo-Pacific region. With converging visions for the Indo-Pacific and awareness of the region's vulnerability to climate change, India and Bangladesh will co-lead the ‘Disaster Risk Reduction and Management’ pillar of the Indo-Pacific Oceans Initiative (IPOI). They will cooperate to mitigate disaster risks, build disaster-resilient infrastructure, and contribute to the sustainability of their shared maritime region.