India withholds clearance, Delaying Nepal’s planned additional 20 MW power exports to Bangladesh

KATHMANDU: Nepal’s plan to increase electricity exports to Bangladesh by an additional 20 megawatts (MW) has been delayed after Indian authorities declined to grant the required transmission approval, citing technical constraints on the India-Bangladesh power corridor.

The delay highlights the continuing dependence of Nepal’s growing hydropower exports on India’s transmission infrastructure, despite both Nepal and Bangladesh expressing willingness to expand bilateral electricity trade.

India Cites Transmission Capacity Constraints

Nepal currently exports 40 MW of electricity to Bangladesh through India’s transmission network under a trilateral power trade arrangement.

During the Nepal-Bangladesh Joint Steering Committee (JSC) meeting held in Dhaka on November 27, 2025, the two countries reached a preliminary agreement to expand the export volume by another 20 MW and agreed to initiate the necessary procedures.

However, because the electricity must transit through Indian territory, the expansion requires approval from Indian authorities.

According to Nepal Electricity Authority (NEA) spokesperson Rajan Dhakal, Nepal has been awaiting clearance from India’s Central Electricity Authority (CEA) since June 15 this year, when the additional exports were scheduled to begin.

“The Indian CEA has informed us that additional exports cannot currently be approved due to limitations in transmission line capacity,” Dhakal said.

‘Neck-to-Neck’ Transmission Operation Raises Concerns

Dhakal said the Indian side has indicated that the existing India-Bangladesh transmission link currently has only 30–40 MW of spare capacity remaining.

Allowing Nepal to export an additional 20 MW would leave only around 15–20 MW of reserve capacity, which Indian authorities believe could expose the transmission system to operational risks if the line is operated at near-full capacity.

According to the NEA, India argues that running the transmission corridor “neck-to-neck”—or close to its maximum technical limit—is not advisable from a grid stability perspective.

India already exports approximately 3,000 MW of electricity to Bangladesh through the same transmission network, making system reliability a key consideration for Indian grid operators.

Nepal Says Additional Export Is Technically Feasible

Despite India’s concerns, Nepal maintains that the additional electricity export remains technically possible.

Dhakal said the existing transmission infrastructure could accommodate the extra power flow with manageable operational risk, provided the issue receives policy-level approval from the concerned governments.

“The transmission is not technically impossible. A positive decision at the secretary level could allow the additional 20 MW to move forward without major difficulty,” he said.

High-Level Bilateral Meetings Yet to Be Held

Officials say progress has also been hindered because regular meetings of the Nepal-India Energy Secretary-Level Joint Steering Committee (JSC) and the Joint Working Committee (JWC) have not taken place for an extended period.

In the absence of those meetings, Nepal’s Ministry of Energy and the Nepal Electricity Authority sent separate communications to Indian authorities requesting approval.

However, Indian officials have reportedly indicated that the matter should be addressed through the formal secretary-level mechanism rather than through individual correspondence.

“We have written separately because the meetings have been delayed, but the Indian side continues to raise technical limitations,” Dhakal said.

Nepal Awaits India’s Confirmation

According to Sandeep Kumar Dev, Joint Secretary at Nepal’s Ministry of Energy, Water Resources and Irrigation, Nepal has already initiated diplomatic communication seeking dates for the next Joint Working Committee and Joint Steering Committee meetings.

The ministry is now awaiting confirmation from the Indian side.

Officials say Nepal intends to make approval for the additional 20 MW export one of the primary agenda items during the upcoming bilateral energy discussions.

Growing Regional Energy Trade Faces Infrastructure Bottlenecks

The latest delay underscores both the opportunities and limitations of South Asia’s emerging cross-border electricity market.

Nepal has rapidly expanded hydropower generation and aims to become a major exporter of clean electricity to neighboring countries. Bangladesh, facing rising electricity demand, has shown increasing interest in importing Nepal’s renewable energy.

However, because Nepal lacks a direct transmission connection with Bangladesh, all electricity exports must pass through India’s grid, making New Delhi’s regulatory and technical approvals indispensable.

The case illustrates how regional energy integration in South Asia remains dependent not only on generation capacity and commercial agreements but also on cross-border transmission infrastructure, grid management, and trilateral policy coordination.

While Nepal and Bangladesh remain committed to expanding electricity trade, the planned increase in exports will remain on hold until India grants the necessary transmission clearance or the three countries reach a fresh agreement through their pending high-level energy dialogue.