South Asian Nations to Hold Multilateral Dialogue on Cross-border Energy Cooperation

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Researched by Industrial Info Resources India (Delhi, India)--Four South Asian nations--India, Bangladesh, Nepal and Bhutan--will soon meet for a comprehensive, multilateral dialogue on cross-border energy cooperation.

According to Bangladesh's Finance Minister A.M.A. Muhith, the proposed meeting would pick up the thread from the recent SAARC Framework Agreement for Energy Cooperation for the eastern sector of South Asia, which was signed at the recently held SAARC Summit in Kathmandu.

The South Asian Association for Regional Cooperation (SAARC) is a group of eight south Asian nations: India, Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka. Energy-hungry SAARC nations also are working toward signing two other agreements on infrastructure. The eastern markets of Nepal and Bhutan, each with hydroelectric potentials of 83,000 MW and 30,000 MW, respectively, could provide hydropower to India and Bangladesh.

India also is looking to export electricity from its north-eastern region, with potential to generate some 58,971 MW, to its eastern States through Bangladesh.

Bangladesh hopes to have access to Nepal and Bhutan's power through India. Bangladesh has formally requested a "power corridor" to access the Bhutanese and Nepalese markets. It has agreed to allow India to transfer hydropower from Assam to Bihar through its territory. The proposed meeting would attempt to remove irritants in project-related areas.

Bangladesh has been facing problems in importing coal from India's northeastern state of Meghalaya. The country, which depends on imported coal for power generation, is now exploring the possibility of importing coal from Indonesia. Bangladesh is likely to put forward a proposal for importing coal from Indonesia during the meet.

The SAARC nations also are working toward the signing of two other cooperation agreements on infrastructure, which were negotiated and coordinated by Nepalese Prime Minister Sushil Koirala.

About 30% of the region's energy demands are met through imports, and the household per capita consumption of electricity in SAARC is mere 128 units, as against the global average of 3,045 units. Currently, India is importing about 1,500 MW from Bhutan, while exporting around 500 MW to Bangladesh and 150 MW to Nepal.

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