Electricity import from neighbouring countries has become easier than ever now that India has revised its cross-border policies allowing Bangladesh to import electricity from other neighbouring countries through India.
The power division released a media statement on Tuesday (Dec 25) saying that India has published the ‘Guidelines for Import-Export (Cross Border) of Electricity- 2018’ on Dec 18 and the new policy will enable Bangladesh to import power from neighbouring countries including Nepal and Bhutan.
India has been objecting to neighbouring countries including Bangladesh from importing power bilaterally by using the Indian territory, citing its ‘Guidelines on Cross Border Trade of Electricity 2016’ policy. As per that policy, if the countries were to import power through India, they would have to do it through a private or state-owned Indian agency.
“We thought India was taking a conservative stand on cross-border power policies but they have shown true liberalism by this policy reform,” said Power Secretary Ahmad Kaikaus adding, “India should be lauded for this move.”
According to clause 3.1 of the ‘Cross-border trade of electricity 2016’, any cross-border transactions between India and the neighbouring country shall be allowed through bilateral agreements between Indian entity and an entity of that country under the overall framework of agreements signed between the countries.
The policy had caused the electricity trade agreement between Bangladesh and Bhutan to be in limbo for quite some time.
However, due to the new policy, two separate states can purchase electricity from each other which India will participate in or approve by way of tripartite agreements.
A memorandum of understanding regarding hydropower was signed with Nepal in 2018 and a Joint Working Group and Joint Steering Committee meeting also took place on Dec 3 and 4 in Kathmandu. Experts are hopeful that the relaxed policy will make electricity of trade with Nepal more convenient.
Meanwhile, the government had planned to import 9,000 mega watt of electricity by 2040. Until now it has purchased 1200 mega watts of electricity from India and is working to import another 1000 mega watts.
Although Nepal has a possibility of producing 30,000 mega watts of electricity, the country is currently producing very limited amount of electricity but several Indian companies are planning to set up hydropower projects there.