Nepal’s plan to export electricity to Bangladesh has been stalled, as it awaits approval from India with only nine days remaining until the November 15 deadline.

This export, part of a five-year tripartite agreement between Nepal, Bangladesh, and India signed on October 3, allows Nepal to supply 40 MW of electricity to Bangladesh through India for five months annually, during the rainy season (June 15 to November 15). However, despite completing all procedures and formally requesting permission from the Indian government on October 4, Nepal Electricity Authority (NEA) has yet to receive the green light from India’s Central Electricity Authority (CEA).

Rajan Dhakal, Director of NEA’s Electricity Trade Department, stated that coordination efforts are underway through Nepal’s Ministry of Foreign Affairs, which is in communication with India’s Ministry of Energy.

“We have completed all formalities and are awaiting India’s response,” said Dhakal, adding, “We’re hopeful India will approve by Friday; otherwise, exports this season are unlikely.” Informal talks continue between Nepal and India in an attempt to expedite the process, despite delays caused partly by festival holidays.

While the formal approval process has seen delays, partly due to the festive season in both countries, informal discussions continue in an effort to expedite the required consent.

The agreement outlines that Nepal would export 144,000 megawatt-hours (MWh) of electricity annually, generating an estimated $9.216 million in revenue at a rate of 6.40 cents per unit. If India gives consent by Friday, NEA anticipates an expedited export process, allowing the supply to Bangladesh, even if initially limited to a test run.

Strategic Significance and Long-Term Impact

This agreement represents Nepal’s first opportunity to export electricity to a country other than India, marking a significant milestone in regional energy cooperation. NEA Executive Director Kulman Ghising noted that this cross-border electricity trade would establish a stable market and create revenue opportunities for the future. The export will be facilitated via the Dhalkewar-Muzaffarpur 400 kV transmission line, with Bangladesh receiving power through India’s Behrampur-Bheramara transmission line.

Both Nepal and Bangladesh are eager to commence the arrangement this year, though the onset of winter poses challenges. As river flows decrease in the dry season, Nepal will eventually need to import electricity to meet domestic demand, further complicating the timeline. “The seasonal drop in river levels makes timely export crucial,” remarked Chiranjeevi Chataut, Joint Secretary of Nepal’s Ministry of Energy.

Efforts to Address Delays and Future Considerations

If export starts within the current period, it will likely involve NEA’s Trishuli (25 MW) and Chilime (22 MW) hydropower projects, which have already received export clearance for India. However, if India’s approval remains delayed, Nepal may lose out on this season’s opportunity, missing a lucrative revenue stream and the strategic benefits of engaging a new regional trade partner.

NEA’s efforts reflect broader aspirations for Nepal to establish itself as a significant energy exporter in South Asia, reinforcing the need for streamlined regional energy agreements. Dhakal said optimistically, “If we receive approval soon, we’re prepared to begin exports to Bangladesh—even if only for a few days—as a precedent for future trade.”