India Delays Approval For Additional 20 MW Electricity Export From Nepal To Bangladesh

Nepal's plan to increase electricity exports to Bangladesh has been put on hold after Indian authorities declined to approve an additional 20 megawatts (MW) of power transmission through Indian territory.

As a result, Nepal will continue exporting 40 MW of electricity to Bangladesh from June 15 under the existing arrangement. Officials said India's Central Electricity Authority (CEA) cited transmission infrastructure limitations as the reason for withholding approval for the proposed expansion.

Nepal had been seeking permission to raise exports to 60 MW, following discussions between Nepal and Bangladesh and an understanding reached during a Joint Steering Committee meeting held in Dhaka in November 2025. The proposal required electricity to be transmitted through India's power network before reaching Bangladesh.

According to officials from the Nepal Electricity Authority (NEA), a formal request for the additional allocation was submitted through India's NTPC Vidyut Vyapar Nigam Limited (NVVN). However, Indian authorities later indicated that the transmission corridor currently being used for electricity trade with Bangladesh does not have sufficient capacity to accommodate the extra 20 MW.

The proposed increase will now require further review through future meetings of the Nepal–India Joint Steering Committee and the Joint Working Group. Officials said no dates have yet been fixed for those discussions.

Nepal currently exports electricity to Bangladesh annually between June 15 and November 15 under a tripartite agreement involving the Nepal Electricity Authority, Bangladesh Power Development Board, and India's NVVN. The existing arrangement allows Nepal to supply 40 MW through India's transmission system.

Electricity exported to Bangladesh is generated from the Trishuli and Chilime hydropower projects. The same projects are expected to supply the additional 20 MW if approval is granted in the future.

Nepal sells electricity to Bangladesh at a rate of 6.40 US cents per unit, and the same tariff is expected to apply to any future increase in export volume. Electricity trade with Bangladesh is conducted in US dollars, while power transactions with India are settled in Indian rupees.

Nepal began exporting electricity to Bangladesh in November 2024 and has steadily expanded its regional energy trade in recent years. According to official figures, Nepal has received approval to export a combined 1,165 MW of electricity to India and Bangladesh.

In the first ten months of the current fiscal year, Nepal earned approximately Rs 20.99 Arba from electricity exports to India and Bangladesh, compared to Rs 13.10 Arba during the same period of the previous fiscal year.