Additionally, Bangladesh's interim administration authorized the purchase of 40 MW of hydropower from Nepal.

There are rumors that the effort to import 40 megawatts of hydropower from Nepal has been approved by Bangladesh's interim administration. This project, which was initiated during the administration of Sheikh Hasina that was overthrown, has raised questions about whether or not the interim administration will embrace it.

The interim administration of Bangladesh is concerned about the transmission line price that the Indian government is imposing on the purchase of power, even though the project has been approved.

The Finance Division of Bangladesh raised concerns about the trading margin that India's NTPC Electricity Trading Corporation Limited (NVVN) would get, casting doubt on the tripartite agreement.

Bangladesh would import hydropower from Nepal through Indian transmission lines. Bangladesh will pay India's transmission line price in exchange for that. Power Division has authorized this arrangement, and India has made this fee flexible.

The finance department, however, has objected, claiming that transmission line costs ought to be set and casting doubt on India's adaptability. Flexible fees, in his opinion, have the potential to undermine the project's long-term partnership. because India is always free to impose tariffs unilaterally rather than through bilateral agreements.

The Business Post, a local publication, quoted a senior Power Division official when it stated, "The Finance Division's objection alone is insufficient." This law was created in India and came into effect in 2018. We must abide by their regulations if we import power from India.

The tax laws of Bangladesh, India, and Nepal apply to the import of 40 megawatts of hydropower from Nepal. Any cost increases that arise from changes in India's tax policy during the import-export process are split equally between Bangladesh and India, 50/50.

In contrast, India bears no responsibility if a change in tax laws in Bangladesh or Nepal impacts the cost. Instead, those countries must absorb the entire burden.

The official further claimed in the post that the dynamics had deteriorated and that decisions had been taken primarily with India's interests rather than Bangladesh's due to the former government's attitude in this issue and the acts of some opportunistic officials in the energy sector.

There is a chance that the tripartite agreement won't happen right away. The Electricity Division stated that a new file needs to be prepared because the file pertaining to Nepal's hydropower, which was transferred to the Law Ministry for review under the Awami League government that was overthrown, was misplaced.

A tripartite agreement is necessary to import electricity from Nepal and might mark the beginning of a new phase of energy cooperation. Bangladesh's government thinks this would open the door for increased imports of hydropower from other nations.

It was originally anticipated that the tripartite agreement would be inked in September. Delays are anticipated, nonetheless, as a result of evolving situations and issues with lost files. Aside from this, it is said that decisions have not yet been made regarding the National Board of Revenue (NBR), Bangladesh Bank (BB), and Financial Institutions Department.

The finance department is the only one that has responded thus far. The acquisition agreement will be completed and sent to the Ministry of Law for review after all opinions have been received. Following approval by the review board, the tripartite agreement will be ready for signature.

In May 2022, an agreement was made between Bangladesh and Nepal regarding the import of power. As per the agreement, 16 MW of power from the other project in Nepal and 40 MW from the first project in Nepal will flow through India and into Bangladesh's national grid at Veramara.

Bangladesh will receive energy from Nepal via India's Muzaffarpur substation. The unit price is fixed at 6.40 US cents. Similarly, the transmission line charge will be Rs 0.76 and the trading margin will be Rs 0.0595 for India's NTPC Vidyut Vyargan Nigam Limited (NVVN).

Bangladesh calculates that the cost of importing this electricity through the Indian system will be 130 crores per year, or 650 crores over the course of five years. There are rumors that 40 megawatts of hydropower that Bangladesh imports from Nepal will be paid for in both US dollars and Indian rupees. Trading margins will be settled in rupees, but hydropower expenses and transmission line fees will be paid in dollars.

The cost of 40 megawatts of hydroelectricity produced in Nepal is cheaper than that of gas or oil-fired energy, but it is more expensive than that of hydroelectricity produced in Bangladesh, according to the energy Division. While Nepal has shown great enthusiasm for this project, India has remained interested notwithstanding the change of government in Bangladesh. Officials are unclear about how the situation will change in light of the current circumstances, though. With the organization's assistance