India's First Transnational Project, Power Export To Bangladesh Begins

25 July 2023

India’s first transnational power project with Bangladesh has been announced. The transnational power project will supply power or electricity to the Bangladesh electric grid. This transnational power project is commissioned and handled by India’s one of the top MNCs. The business group has announced the full commission for the project and confirmed its commencement of the power supply through an Ultra Super-Critical Thermal Power Plant (USCTPP) which will export the electricity to Bangladesh at full capacity and power.

 India’s Energy Demand In Bangladesh

Both Asian countries share bilateral trade with each other, amounting to a total trade of India’s exports to Bangladesh totaling $13.41 billion, and India’s imports from Bangladesh totaling about $2 billion for the year 2022, as per import-export data 2022.

According to India exports 2022, the top commodities exported to Bangladesh, in bifurcation on the basis of Chapters level, consist of—Cotton (23.2%), Cereals (10.4%), Industrial Machinery (7.2%), Mineral Fuels & Oils (6.86%), Vehicles Parts & Accessories (6.7%), and more in the list.

Electricity Sector of Bangladesh

Bangladesh’s electricity sector has been working towards the implementation of alternatives to fulfil the demand for electricity in the country. It has been recorded that electricity availability increased from 20% in 2000 to 80% of the population in 2020.

The evaluation of trade data shown below reveals that India’s electricity exports to Bangladesh have increased significantly. As per India export data 2022, exports increased from $189.84 million in 2018 to $537.02 million in 2022.

The demand for electricity has relatively increased in Bangladesh in the last decade as the consumption of electricity increased due to the rapid growth of the Bangladeshi economy. While the country is self-sufficient to generate electricity, fuel shortages in June resulted in power cuts.

India’s first transnational power project with Bangladesh will not only benefit India but also Bangladesh in the long run. Meanwhile, Bangladesh is looking for alternate sources of power to generate electricity, and the project has seen a green flag from the authorities for full-load commencement.