Bangladesh, Nepal, and India yesterday inked a tripartite agreement to facilitate cross-border electricity trade between Kathmandu and Dhaka.

As per the agreement signed in Kathmandu, Nepal will export its surplus electricity to Bangladesh via India from June 15 to November 15 every year. India will arrange to transmit electricity from Nepal to Bangladesh through its power line.

In the first phase, Nepal will export 40MW of hydroelectricity to Bangladesh via Indian territory, PTI reported from Kathmandu.

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Nepal to ensure export of power to Bangladesh, India

The rate per unit of electricity has been fixed at 6.4 cents. From the export of electricity, Nepal will make an annual income of around $9.2 million, Nepal Electricity Authority (NEA) officials said.

The MoU was signed in Kathmandu between Bangladesh Power Development Board Chairman Mohamad Rizwan Karim, Nepal Electricity Authority Executive Director Kulman Ghising and National Thermal Power Corporation Vidyut Byapar Nigam CEO Deino Naran of India, Nepal's Ministry of Energy officials said.

Bangladesh's interim government's Adviser for Forest, Environment, Climate Change and Water Resources Syeda Rizwana Hasan And Nepal's Energy Minister Deepak Khadka, Minister of State for Energy Purna Bahadur Tamang, witnessed the signing of the deal.

The deal allows Nepal to sell electricity to a third country for the first time. So far, Nepal's energy trade has been taking place only with India.

According to the deal, Nepal will transmit the energy to India through the 400KV Dhalkebar-Muzaffarpur cross-border transmission line and India will transmit the equivalent amount to Bangladesh.

Nepal estimates an earning of around Nepalese Rs 330 million for the country through the sale of electricity.