Bangladesh is currently facing a serious electricity crisis. There are power cuts for several hours in the capital Dhaka and surrounding rural areas. Due to lack of foreign exchange reserves, it has become difficult for Bangladesh to buy expensive coal and gas from the international market.
In such a situation, Bangladesh has demanded additional electricity and diesel supply from India to meet its energy needs. India already exports large quantities of power to Bangladesh.
India provides maximum electricity to Bangladesh
Bangladesh is the largest customer among the countries purchasing electricity from India. Under the agreements between the two countries, India provides about 2000 to 2650 MW of electricity to Bangladesh.
India earns about 1.1 to 1.2 billion dollars i.e. more than 9 to 10 thousand crore rupees every year from electricity export, of which the largest share comes from Bangladesh.
Many companies including Adani Power supply
Indian companies have a big role in supplying electricity to Bangladesh. A large amount of electricity is sent to Bangladesh from the Adani Power Plant located in Godda, Jharkhand.
Apart from this, companies like PTC India, Sembcorp and NTPC Vidyut Vyapar Nigam (NVVN) also provide electricity to Bangladesh under Power Purchase Agreement.
However, due to delay in payment of electricity bills by Bangladesh, the supply system has been affected for some time.
Two-way power trade with Nepal
Electricity trade between India and Nepal goes both ways. In winter, hydropower production decreases due to low water level in Nepal, then Nepal buys electricity from India.
Whereas during monsoon, when Nepal produces more electricity, it sells the excess electricity to India. In recent years, Nepal has earned well by exporting electricity to India.
India buys hydropower from Bhutan
India's energy relations with Bhutan are mainly based on hydropower. Bhutan sells surplus power to India from several hydropower projects developed with India's help.
India gets more electricity from Bhutan during summer and monsoon, while in winter, when needed, Bhutan draws electricity from India's grid.
Energy cooperation is also increasing with Sri Lanka and Myanmar.
India provides limited amount of electricity to the border areas of Myanmar. At the same time, work is going on on a plan to increase power connectivity with Sri Lanka through undersea transmission cable.
In South Asia, India is no longer just a power producing country but is also becoming one of the major countries strengthening regional energy security.