Indian guideline obstacle to regional power market

The dream of establishing a "Common Power Market" in the Sub-Continent is still an unrealistic idea as experts and investors feel that the 'Guidelines on Cross Border Trade of Electricity' of the Indian government is a major impediment here.
The guidelines issued by the Indian government says, "The companies fully owned by the government of concerned countries and those having 51 per cent equity investment of Indian public and private companies can export power to the Indian market after obtaining one-time approval from the designated authority in India"---this clause is not favouring Bangladesh, Bhutan or Nepal in the region, experts felt.
"Bangladesh signed a MoU with Nepal to establish a hydropower plant there with Indian company GMR as a party. Our plan was to bring the power through India, but now we are not able to bring it as GMR needs to invest 51 per cent of the whole investment and would get the authority to control the project then why any other party will invest here," former adviser to the caretaker government Prof  M Tamim asked.
If the policymakers want to establish the much-awaiting grid line then the guideline should be reviewed, he said.
'Guidelines on Cross Border Trade of Electricity' enacted by the Ministry of Power of India in a bid to regularise electricity trade with its neighbours Nepal, Bangladesh, Bhutan and Myanmar.
"Cross border transactions between India and neighbouring countries 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.
Ministry of Power, Government of India shall designate an Authority (Designated Authority) for facilitating the process of approval and laying down the procedure for cross border transaction and trade in electricity," these lines clearly favours the Indian Authority, which is serious impediment to fixing up of the modality to import power from India, experts said.  
While the guidelines simplified electricity export to India from such entities, other independent power producers and potential foreign investors (except Indian) eyeing Indian market to export electricity will be dealt with on case-by-case basis as per the provision of the guidelines, which disappointed independent power producers and potential foreign investors in Nepal, Prof Tamim said.
"India has taken lead in promoting trade of electricity among neighbouring countries through Indian Power Exchanges. The modalities and products of such power trade through the exchanges will be as per the extant power market regulations," the guideline said.
If we discuss the guideline then we can find that the transmission line and distribution line can also favour the Indian investor so it is one-sided one, a senior official of the Power Division told the Daily Observer on Tuesday.
"Once Bangladesh or any country except India signs a bilateral agreement to produce power or to purchase power from the common market then it needs to go twice to the Central Electricity Regulatory Commission (CERC)  of India, as it termed the word "bi-lateral" as  a break on a tri-party or multi lateral agreements," the official added.
Although the government of India has expected that the hydropower potentials of the neighbouring countries, which has not been harnessed over the years, will be developed on fast track as the stakeholders including financiers would have transparency in the utilisation of such power projects but if we will not rectify all these small but essential changes here then it will never yield any fruit in electricity trading in this region, Prof Tamim said.
The trade of electricity from India has been increased many folds with its neighbouring countries including Bangladesh and Nepal----Bangladesh is now importing from India. Around two billion units of electricity have been supplied to Nepal during last two years. Many more cross border inter-connections have been planned and would be implemented in the shortest possible time with a view to enhancing power trade."
At present, Cross Border Trade of Electricity has been taking place with Bangladesh, Bhutan and Nepal under bilateral Memorandum of Understanding (MoU) / Power Trade Agreement (PTA).