India, Nepal, and Bangladesh recently reached an agreement on a tripartite power trade agreement, reflecting New Delhi's endeavors to increase energy ties within the region. The first-of-its-kind pact has been accepted by the three nations and is expected to be finalized in the upcoming months. This is going to fulfill the long-standing request from Nepal and Bangladesh to permit the exchange of electricity through India's grid. This initiative is part of India's aim to develop energy connections with Bangladesh, Bhutan, Nepal, and Sri Lanka by establishing electricity transmission networks and petroleum pipelines.

During the recent visit of Nepal’s Prime Minister (Pushpa Kamal Dahal) to New Delhi, India in early June, the Prime Minister of India (Narendra Modi) presented India's master plan to increase Nepal's hydropower exports to Bangladesh. Dahal said the country is going to start with exports, but there is a possibility that exports is expected to increase after the deal is closed. The proposed deal would allow Bangladesh to import electricity from Nepal through India's transmission grid.

A trilateral power trade agreement between India, Nepal and Bangladesh facilitates the export of hydropower from Nepal to Bangladesh through India's transmission network. The deal is expected to enable Nepal to export electricity to Bangladesh through the Indian transmission grid. India has agreed to submit a proposal to export 50 megawatts of electricity generated by hydropower projects in Nepal to Bangladesh, subject to certain conditions. The proposal is to be submitted to the Central Electricity Board of India for approval and the Indian authorities are going to carry out the necessary review and approval in accordance with the guidelines issued by the Government of India on cross-border electricity.

A trilateral electricity trade agreement would bring many benefits to these three countries. This is going to help reduce power shortages in Bangladesh and Nepal while providing a market for surplus electricity generated in Nepal. The agreement is also expected to help strengthen regional cooperation and integration, which is a top priority for all three countries.

The proposed agreement is an important step towards improving energy connectivity in the region and helps promote sustainable development and economic growth. It is also likely to help reduce Bangladesh and Nepal's dependence on fossil fuels, which benefits the environment. The contract is expected to be signed in the coming months and it is hoped that it would be implemented as soon as possible.