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:

The Electronic Cargo Tracking System (ECTS) will be rolled out on pilot basis to facilitate the movement of...

Read More


The Rangpur Chamber of Commerce and Industry (RCCI) hosted a discussion on exploring Bangladesh-Nepal trade potential, with Bangladeshi...

Read More


India's momentous leap to rank 77 in the World Bank's Ease of Doing Business rankings was highlighted at...

Read More


This commentary by Mr. Md Neyamul Islam, Joint Commissioner, Customs House, Inland Container Depot in Dhaka, discusses how...

Read More


The Governments of India and Nepal have agreed to establish an energy banking mechanism that will enable both...

Read More



Sri Lanka’s President Maithripala Sirisena and Mr. Takehiko Nakao, President, Asian ...

Read More