Er.energyNP@Gmail.com

Nepal's plan to export an additional 20 megawatts (MW) of electricity to Bangladesh has been stalled after the Indian side hesitated to grant approval, citing technical reasons.

Currently, Nepal exports 40 MW of electricity to Bangladesh through India's transmission network. During the Nepal-Bangladesh Joint Steering Committee (JSC) secretary-level meeting held in Dhaka on November 27, 2025, the two countries reached a preliminary agreement to increase exports by an additional 20 MW. The meeting also agreed to move forward with the necessary procedures.

Since the electricity must pass through India, approval from all three countries is required. According to Nepal's Ambassador to Bangladesh, Ghanshyam Bhandari, the existing 40 MW is being exported smoothly under the previously signed trilateral agreement. He added that the process for the additional export has been underway since the agreement reached in December.

According to Rajan Dhakal, spokesperson for the Nepal Electricity Authority (NEA), Nepal has been waiting for approval from India's Central Electricity Authority (CEA) to begin exporting the additional 20 MW, which was scheduled to start from June 15 this year. Dhakal said the CEA informed Nepal that it could not approve the additional export due to limited transmission line capacity.

India wants the issue discussed at the secretary level

Dhakal said the Indian CEA has stated that only 30–40 MW of spare capacity currently exists on the India-Bangladesh transmission link, making it impossible to accommodate additional electricity exports. Although Nepal wishes to export another 20 MW immediately, the Indian side argues that operating the transmission line at "neck-to-neck" (full capacity) could create technical risks.

"India's CEA has argued that it is technically inappropriate to operate the transmission line at its absolute limit," Dhakal said. "India already exports around 3,000 MW of electricity to Bangladesh. They believe that adding another 20 MW would leave only about 15–20 MW of spare capacity, which could pose risks to the stability of the system."

However, Dhakal argued that exporting additional electricity through the existing transmission line is not entirely impossible. He said that, although it would involve accepting some operational risk, the electricity could still be transmitted if approved through a high-level bilateral mechanism.

High-level meetings yet to be held

To advance the trilateral electricity trade agreement among Nepal, India, and Bangladesh, meetings of the Nepal-India Energy Secretary-Level Joint Steering Committee (JSC) and the Joint Working Group (JWG) are essential. However, these meetings have not been held for a long time.

Due to the delay, Nepal's Ministry of Energy and the Nepal Electricity Authority had separately written to the Indian side requesting approval. According to Dhakal, India has indicated that the matter should instead be discussed during the secretary-level meeting.

"We had sent separate letters even though the meetings had not taken place, but they continue to cite technical limitations," Dhakal said. "If the secretary-level meeting concludes that an additional 20 MW would not significantly affect the system and decides to move forward, this issue could be resolved immediately."

According to Sandeep Kumar Dev, Joint Secretary at Nepal's Ministry of Energy, diplomatic correspondence has already been exchanged to convene the JWG and JSC meetings, and Nepal is currently awaiting confirmation from India. The Nepal Electricity Authority plans to raise this issue as a key agenda item at the upcoming meeting in an effort to open the way for increased electricity exports to Bangladesh.

Speculation over possible non-technical reasons

Some observers speculate that India's reluctance may not be purely technical, drawing parallels with the ongoing difficulties faced by Nepali tea exports to India, which have also encountered obstacles. Although India cites technical reasons in the case of electricity, some believe the situation resembles the trade barriers affecting tea exports.

Although both Nepal and Bangladesh are ready to expand electricity trade, the project remains uncertain because the electricity must pass through India's transmission corridor, making Indian approval indispensable.