Import of power from Bhutan, Nepal hits snag

Bangladesh is likely to fail to tap the hydro-electricity potentials of Bhutan and Nepal as the Indian power regulatory body has adopted a new cross-border power trade guideline that allows only bilateral deal for importing power.
In the last one and half years Bangladesh completed initial discussions with Nepal and Bhutan to sign several memorandum of Understandings (MoU) in this regard but now the power division is working only one project,  'Kuri-1,' from Bhutan.
The Indian government launched the 'Guidelines on Cross-Border Trade of Electricity' on December 5 in 2016 in a bid to regulate its electricity trade with its neighbours- Bangladesh, Nepal, Bhutan and Myanmar. Bangladesh, India and Bhutan are likely to constitute a tri-nation joint venture for developing a 1,100 MW hydropower plant in Bhutan, Mohammad Hossain, Director General of Power Cell told the Daily Observer on Tuesday.
"We've been communicated by officials at New Delhi that the Indian authorities have given consent to the MoU," he added.
To meeting the country's growing demand of electricity, Bangladesh keeps its eyes on hydro-electricity potential of Nepal and Bhutan for the last two decays. In fact, it mentioned the issue in its Power Sector Master Plan (PSMP) yearly book.
"In last one and half years we wanted to import about 4,200 MW electricity from Nepal and Bhutan. The three nations have already completed initial discussions to sign a MoU to go ahead with the proposed power project, 'Kuri-1' but we don't know about the fate of other projects of Bhutan and Nepal," a senior official remarked.
The four nations dream to share the hydro-electricity potential of this sub -continent is in limbo as power sector cooperation between Bangladesh, India and Nepal and Bhutan has taken a snail pace due to this guideline.
Power Division officials said Indian Power Ministry officials have verbally informed Dhaka that their government has endorsed the Kuri-1 MoU. But the fate of importing 4,500 MW of electricity by 2030 from neighbouring countries would face huge difficulties, the official noted.
"India has adopted a new cross-border power trade guideline that allows only bilateral deal for importing power. But Bangladesh has been negotiating with Nepal and Bhutan for setting up mega hydroelectric power projects with the consent of India for importing electricity through the Indian corridor?.we do not know what to do," another senior official said.
Industry insiders said the new guideline adopted by India for cross-border trade of electricity might hamper the implementation of any tripartite or multilateral deals.
"Dhaka has also initiated a move to set up a power plant in Nepal and import electricity from the plant. What will be fate of the project as Bangladesh needs Indian corridor to import it," he questioned.
"The Guidelines on Cross-Border Trade of Electricity contradicts the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) common power gridline or SAARC gridline," an official said.
Dhaka is also worried over regulations adopted by Delhi that would allow imposing supplementary duties and other financial liabilities on electricity exports from India.
Bangladesh has already exempted India from all supplementary duties and other duties for implementing a series of power projects here by Indian state-owned NTPC and private entities like Reliance Power Ltd and Shapoorji Pallonji Infrastructure Capital Company Ltd. 
 "This topic should be discussed between the two Prime Ministers as it is related with the policy-decision of the two countries, we hope that the Foreign Ministry will look into the issue to ensure future energy security on affordable price," the official said.