India Cabinet Approves Signing of BIMSTEC Power Grid Pact

20 April 2017

India's Union Cabinet, chaired by Prime Minister Narendra Modi, approved on 12 April 2017 the ratification of the Memorandum of Understanding (MOU) for the Establishment of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Grid Interconnection. The Memorandum was proposed by the Indian Ministry of Power.

The MOU will provide a broad framework for the BIMSTEC countries to cooperate toward the implementation of grid interconnections for trade in electricity. It aims to promote rational and optimal power transmission in the BIMSTEC region. BIMSTEC member countries comprise Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand.

The MOU will also facilitate the optimization of energy resources in the region for mutual benefit, subject to laws and regulations of the respective parties; promote efficient and secure operation of power systems; optimize capital investment for generation capacity across the region; and facilitate power exchange through cross-border interconnections.

The MOU is expected to be signed by BIMSTEC member states at the next BIMSTEC Energy Ministers’ Meeting to be scheduled in Nepal.

The BIMSTEC Energy Ministers’ Conference formulated the Plan of Action for Energy Cooperation in BIMSTEC on 4 October 2005, in New Delhi. The Plan mandated a task force to report on a draft MOU for grid interconnections.

Related Links:

Bangladesh, India to Pilot Cargo Railway Service

Bangladesh and India will pilot a freight train service between Dhaka and Kolkata in August, using the broad...

SASEC Road Connectivity to Open Opportunities for MSMEs

India’s Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, gave its approval for a $253,406,409...

ADB to Help Nepal Modernize Trade Facilitation

The Asian Development Bank's (ADB) has approved a $21 million loan to support the Government of...

Commentary: Standards Need Continuous Updating

This commentary by Ms. Ferdaus Ara Begum, Chief Eecutive Officer, Business Initiative Leading Development, highlights the need to...

India Allows Export of Essential Agri Commodities to Maldives

The Government of India has allowed the export of select commodities to Maldives for 2017-2018 without any policy...

Forum Emphasizes Importance of Cooperation in Regional Initiatives

The forum "Linkfest Talk on Economic Development in Landlocked Countries Part 2" organized by the French Embassy, Alliance...

Bangladesh to Ease Transshipment of Goods with Road Widening Project

The Bangladesh Executive Committee of the National Economic Council approved a road widening project for the 51 kilometer...