News BBIN pact: India, Bangladesh, Nepal okay vehicle movement procedure

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BBIN pact: India, Bangladesh, Nepal okay vehicle movement procedure
Bangladesh, India and Nepal have given nod to operating procedures for movement of passenger vehicles in the sub-region under Bangladesh-Bhutan-India-Nepal (BBIN) motor vehicles agreement, the government said on Monday.

For seamless flow of passenger and cargo traffic in the region, BBIN motor vehicles agreement (MVA) was signed by the transport ministers of the BBIN countries in Thimphu, Bhutan on 15 June 2015. However, Bhutan could not ratify it later.

“Bangladesh, India and Nepal have agreed on the text of the operating procedures for passenger vehicle movement in the sub-region under the BBIN MVA signed in June 2015, and will soon complete the internal approval processes for signing of the passenger protocol,” ministry of road transport and highways (MoRTH) said in a statement.

It said the participating countries have also agreed to conduct more trial runs for cargo vehicles under the agreement during a high-level meeting of officials of the three countries for implementation of the MVA last week in Bengaluru.

A Bhutanese official delegation also attended the meeting as observer. Earlier, trial runs for cargo vehicles under the MVA were conducted along the Kolkata-Dhaka-Agartala and Delhi-Kolkata- Dhaka routes. “Bangladesh, India, and Nepal have already ratified the MVA and have agreed to start implementation of the MVA among the three signatory countries, with Bhutan joining after it ratifies the Agreement,” the statement said.

Joint secretary, MoRTH, Dakshita Das said, “India will do its best to make the MVA successful, making it a key instrument in accelerating cross-border trade and economic integration in the subregion”. The Asian Development Bank (ADB) has been providing technical, advisory, and financial support to the BBIN MVA initiative as part of its assistance to the south Asia sub-regional economic cooperation (SASEC) programme, a projects-based economic cooperation initiative that brings together the BBIN countries, Maldives, Sri Lanka and more recently, Myanmar.

According to the statement, the officials of the three nations have agreed on the text of the passenger protocol, the document detailing procedures for cross-border movement of buses and private vehicles, to be signed by the three countries after completing necessary internal approval processes in their governments.

The delegations also agreed to continue to conduct trial movement of cargo vehicles along scheduled routes from April 2018 onwards, before finalising the protocol for cargo vehicular movement.
BBIN pact: India, Bangladesh, Nepal okay vehicle movement procedure
 
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Crossing the border
Bangladesh, Bhutan, India and Nepal have signed a sub-regional Motor Vehicle Agreement (MVA) in June 2015 for the regulation of passenger, personal and cargo vehicular traffic between these four countries. This agreement will institutionally and physically accelerate the implementation of land transport facilitation arrangements and enable the exchange of traffic rights. It is expected to ease the cross-border movement of goods, vehicles, and people. This complementary instrument to the existing bilateral transport agreements would thereby help expand people-to-people contact, trade, and economic exchanges. The very first meeting of transport ministers of the BBIN countries, held in Bhutan in June 2015, bestowed the technical and facilitating role to the Asian Development Bank (ADB).

Despite a string of sub-regional transport projects under the ADB-supported South Asia Sub-regional Economic Cooperation (SASEC- 2002), a new initiative using the acronym BBIN primarily focusing on the Eastern South Asia sub-region was floated in 2015. What possibly triggered this sudden move towards sub-regionalism was the failure of the signing of a SAARC Motor Vehicle Agreement and SAARC Regional Railways Agreement in the 18th Summit in Kathmandu in November 2014. On this averted motor vehicle agreement triggered by Pakistan’s withdrawal syndrome, the Summit ‘agreed to hold a meeting of the Transport Ministers within three months in order to finalise the Agreements for approval’. Like any agenda dropped on the grounds of ‘no unanimity’, this agreement too could never be revived in the last six years. Knowing this, these four countries took a sub-regional route to accelerate cross-border transport facilitation. A similar sub-regional venture known as South Asia Growth Quadrangle was semi-officially planned but had failed in the late 1990s.

Bangladesh, India and Nepal have ratified the Agreement; demonstration runs of passenger and cargo services have been carried out. Despite the six-month work plan (July-December 2015) for the implementation of the BBIN, like a plethora of SAARC projects in the past, the MVA has also failed to take off. The Joint Working Group Meetings on Sub-Regional Cooperation between BBIN have not been held since its third meeting in Dhaka in January 2016. This meeting, in fact, discussed Water Resources Management and Power, and Connectivity and Transit, and decided that ‘the next meeting of the JWGs would be held in the second half of 2016 in India’. Yet, no meeting has taken place. This is somewhat like the trend observed in other regional groupings. This lacklustre performance of such a prized project is attributed to five factors.

Firstly, the Memorandum of Understating that would enable the implementation of the MVA among the three countries (Bangladesh, India and Nepal) has not been signed as yet. The delegates of these three countries last met (with Bhutan as an observer) in February 2020, where they agreed to consider expediting the finalisation of this memorandum without obligation to Bhutan.

Secondly, the Bhutanese National Council, the upper house of Tshogdu (National Assembly) did not ratify this Agreement on grounds of ‘flouting immigration laws’, ‘risking environment and security’, ‘too small to be swamped by the vehicles of three countries’. Hence Bhutan remains out of the purview of this sub-regional arrangement.

Thirdly, the complications and complexities of foreign vehicular and cargo movement at least in the 10 eastern-north eastern states of India, several districts of Nepal and 64 districts of Bangladesh are difficult to manage and negotiate at the sub-regional level as reflected in the protocols. The border management regimes are strikingly different, varying from open to porous to barbed-wire borders. For instance, there are serious constraints ranging from formalities, taxes, rest and recreation areas, laws and regulations, coordination and security between the states in India and inner line and restricted area permits in case of the North East region of India. The internal consultations among the stake-holders for the protocol for movement of passengers are still going on.

Fourthly, the installation of the prerequisites for implementing the approved agreements including IT systems, infrastructure, tracking, and regulatory systems remain far-off issues today. And finally, there are still some apprehensions with regard to safeguarding measures on ‘rights and obligations of all parties under other international agreements and bilateral agreements within the group, including those relating to landlocked countries’.

Growth rectangle
As soon as the MVA is fully implemented and member countries start harnessing the unlimited advantages, the BBIN could be expanded in the eastern front to include Myanmar. This could take the form of the BBIN-M Growth Rectangle. India and Myanmar are now thrashing out similar bilateral motor vehicle agreements. In the process, two bridges viz the North East region of India and Myanmar to South East and East Asia will be built and crossed to meaningfully integrate other sub-regionalism processes. Both ADB and Japan are already deeply engaged on both sides of this sub-regional geography and could be the institutional, investment and connectography pivots.

Besides facilitating varied land to land connectivity, this conglomeration will generate economies of scale, set up supply chains, establish cross-regional micro, small and medium enterprises and energy grids, attract investment and technology exchanges and develop projects strewn over the border and borderland communities. They can collectively manage disasters, monitor natural resources, and more importantly, it will lead to a market expansion—both for the manufacturing and services sectors. In another way, this Growth Rectangle could turn out to be a miniaturised, doubly-productive and more functional version of both SAARC and BIMSTEC.

However, this Growth Rectangle will have to address several primary concerns and first-level constraints. Will it become a formal sub-regional organisation incorporating in its agenda other crucial activities like investment, trade, tourism, infrastructure, water and energy? Unlike SAARC and BIMSTEC, could it be very specific project-oriented?

Will it allow Bangladesh, Bhutan and Nepal to have seamless access to connectivity linkages with the Southeast Asian countries, including the use of the India-Myanmar-Thailand trilateral highway and Sittwe port in Myanmar? Given the present shape, deprived authority and dismal delivery records of both SAARC and BIMSTEC Secretariats, are member countries amenable to locate the work office of this Growth Rectangle to or near the ADB headquarters in Manila?

Will India—in its foreign policy matrices—extend strategic incentives to these smaller states by co-opting them as partners in India’s Act East Policy? This to a certain extent could de-attract the Himalayan nations from their recent proclivity to look northwards. Amidst its Southeast Asian identity, affiliation and deeper connectivity with ASEAN and a far-reaching project like China-Myanmar Economic Corridor Cooperation plan initiated in 2019, how to bring Myanmar to this fold itself will itself be a formidable challenge.

How this Growth Rectangle could go beyond pledges and promises marred by consistent inaction, feeble political commitment and bureaucratic lethargy is an important question. Who would take the risk of crossing the Shakespearian allusion: ‘words, words, words; promises, promises, promises; tomorrow and tomorrow and tomorrow’.
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Opinion | Crossing the border

The motor vehicle agreement between Nepal, Bangladesh and India has potential--but it, unfortunately, may go the same route as SAARC.
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Bhutan: The significance of opening of new trade routes
The Covid-19 pandemic has redefined the way the world thinks about connectivity. With international trade taking a severe beating at the hands of the virus, policy discourses on improving connectivity and boosting trade have taken a backseat. Given the situation, the pandemic may probably stay for a while, but causing the continued suspension of connectivity and trade for long would be untenable.

Even in these unusual times, Bhutan and India opened a new trade route on 15 July. The new trade route passes through the Indian town of Jaigaon in West Bengal and leads to Alhay near Pasakha in Bhutan. It is a temporary measure, announced by India at the behest of Bhutan. It is in recognition of the special ties that the two countries maintain, and India’s effort to support Bhutan in this tough time.

Sustenance of trade
Following the spread of the pandemic, Bhutan had sealed its borders on 23 March. Bhutan had stocked fuel and essential food items for at least 12 days as a contingency. As a precautionary measure, a high alert was sounded on the Jaigaon-Pheuntsholing trade route, which accounts for 90 percent of the bilateral trade. The Pasakha industrial estate, a major hub of Bhutan’s industrial activities, was, however, allowed to remain open with some riders by the Bhutanese government.

Despite the pandemic, India provided full support to Bhutan, facilitating supply of both essential items and other goods, including industrial raw materials. India also facilitated movement of people who wanted to return to Bhutan. Bhutan too continued engaging in trade and business with people in border towns, especially Jaigaon.

Interestingly, in the period between March and July, Bhutan’s imports of essential items increased from Nu. 2.19 billion last year to Nu.3.31 billion during the same period this year, according to Kuensel reported trade figures. However, imports of industrial raw materials and petroleum products from India witnessed a drop — to Nu. 7.35 billion and Nu. 1.82 billion respectively. Also, unlike during the pre-Covid days, now it is mostly Indian vehicles that are transporting the goods between Jaigaon and Phuentsholing.

The new route, under the Jaigaon Land Customs Station (LCS) at Alhay, would expedite the movement of trucks carrying industrial raw materials from India to Bhutan and boost trade and commerce between the two countries, say diplomats. This route provides an alternative to the Jaigaon-Phuentsholing route, thus decongesting the traffic. The route will immensely help Bhutan’s import of raw materials for the Pasakha Industrial Estate.

Resuming boulder exports
Bhutan is keen on resuming boulder trade with India and Bangladesh. Reportedly, Thimphu is set to resume boulder exports from Samste district that shares borders with the Indian States of Sikkim and West Bengal. Resumption of trade in boulders is crucial for Bhutan as it is the second highest export commodity in terms of value.

Bhutan’s boulder business has increased exponentially in the last two years, doubling from Nu. 2.1 billion in 2018 to 4.9 billion in 2019. Earlier, Bhutan had requested India to allow exports of boulders across the Jitti-Nagrakata LCS.

The trade activities and announcement of new routes is an indication of the strong inclination of both India and Bhutan to support each other in times of an emergency. It also is a signal of New Delhi’s resolve to sustain and expand connectivity in the sub-region.

Sub-regional connectivity
The trial run in July of a container ship from Kolkata to Agartala via Chittagong Port of Bangladesh boosts prospects for sub-regional connectivity. This operation of multimodal transhipment holds great potential not just for India’s connectivity in the north-eastern region but also for Bhutan.

Already, Bhutan is awaiting approvals for third country exports from Bangladesh for Mongla and Chittagong ports. In a separate development, India and Bangladesh added new ports of call that included Jogighopa in Assam that allows connectivity to Meghalaya and Bhutan as well. Bhutan is keen on operationalisation of the Jogighopa port for aiding the flourishing boulder business.

Bhutan is also in talks with Bangladesh for adding a few additional ports between Chilmari and Narayanganj in Bangladesh. Such connectivity between the three countries that have already initiated new routes and modes of connectivity present prospects for connectivity in the sub-region.

The starting of new trade routes through land and water modes gives fresh impetus for Bhutan to reconsider joining the BBIN initiative and strengthen sub-regional connectivity.
 
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Major breakthrough in Nepal–India relations: Prime Minister Sher Bahadur Deuba’s visit to India​

Nepal has been facing an unprecedented economic crisis because of the liquidity crunch, depletion of foreign exchange reserve, and above all, the border with China is virtually closed, which has been hampering the movement of people and goods between the two countries affecting the inflow of tourists and investment from China to Nepal. In his bid to defuse the crisis at home, the Nepalese Prime Minister Sher Bahadur Deuba made an official visit to India on 1–3 April, where he discussed a wide range of issues with his Indian counterpart Narendra Modi such as boundary issues, hydropower development, power trade, financial connectivity, and cross-border transportation. Agreements signed between the two countries in some of these areas are crucial to the future of Nepal.
Both Nepal and India claim the Kalapani, Lipulekh, and Limpuaduhura areas lying in Nepal’s northwestern direction as part of their respective territories. Also, the two leaders agreed that the open border system between the countries should not be allowed to be misused by unwanted elements.
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In Delhi, both Prime Minister Deuba and Prime Minister Modi agreed to resolve the contentious boundary issue through a bilateral mechanism via dialogue in the spirit of the close and friendly relations shared by the two countries. The relations between Nepal and India were strained on the boundary issues in May 2020 at a time when K.P. Sharma Oli was the Prime Minister of Nepal. Both Nepal and India claim the Kalapani, Lipulekh, and Limpuaduhura areas lying in Nepal’s northwestern direction as part of their respective territories. Also, the two leaders agreed that the open border system between the countries should not be allowed to be misused by unwanted elements.

Nepal and India also reviewed the progress in the implementation of Indian projects in Nepal. They agreed to expedite the progress in the implementation of the Pancheshwar Multipurpose Project. It was as far back as 1996 when Prime Minister Sher Bahadur Deuba of Nepal and Prime Minister Narasimha Rao of India had signed the Mahakali Treaty, which was also ratified by the Nepalese Parliament with over two-thirds majority. But even after more than two-and-half decades, the project remained in limbo and its Detailed Project Report (DPR) could not be finalised. If the Pancheshwar Multipurpose Project under the Mahakali Treaty were implemented, that could have generated 6,000 MW of hydropower and have proved a game-changer for Nepal.

To ensure the time-bound completion of India-assisted projects in Nepal, Prime Minister Deuba assured India of his government’s full support in resolving all the outstanding issues in the implementation of India-assisted projects like the National Police Academy at Kavrepalanchowek, the Integrated Check Posts at Nepalgunj and Bhairahawa, along with the projects under the Ramayana circuit.

Prime Minister Deuba and Prime Minister Modi also inaugurated a 90-km long 132kvdc Solu Corridor Transmission line and sub-station in Nepal under the government of India’s Line of Credit at the cost of INR. 200 crores. India also helped Nepal to become a member of the International Solar Alliance, which is a step towards promoting the production of sustainable, affordable, and clean energy.
Prime Minister Sher Bahadur Deuba and Prime Minister Narendra Modi inaugurated cross-border passenger train services between Jaynager in Bihar (India) and Kurtha/Janakpur (Nepal), which happen to be a part of the 68.7 kilometres Jaynagar–Bijalpura–Bardibas rail link constructed with the grant assistance of the government of India at the cost of NPR. 8.77 billion.
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Most importantly, the two countries finalised a vision statement to strengthen cooperation on the joint development of power generation projects in Nepal. Accordingly, the focus was given to cross-border development of infrastructure to facilitate bi-directional power trade between the two countries. Towards this end, Prime Minister Sher Bahadur Deuba and Prime Minister Narendra Modi inaugurated cross-border passenger train services between Jaynager in Bihar (India) and Kurtha/Janakpur (Nepal), which happen to be a part of the 68.7 kilometres Jaynagar–Bijalpura–Bardibas rail link constructed with the grant assistance of the government of India at the cost of NPR. 8.77 billion. Besides, they also launched the RuPay payment card system in Nepal, which is expected to add a new chapter to financial connectivity between the two countries and promote bilateral tourist flows, apart from strengthening people-to-people linkages between the two countries.

Soon after the announcement of the Joint Vision Statement on Power Sector Cooperation, India allowed the Nepal Electricity authority to sell an additional 325 MW of electricity to India over and above the 39 MW of power that is already exported. Now, Nepal will start exporting power to India from the upcoming monsoon season as the country would have a power surplus to the extent of 400 to 500 MW by that time. Welcoming India’s positive attitude towards Nepal, Kul Man Ghising, the Managing Director of Nepal Electricity Authority stated, “This is an important milestone for Nepal’s power sector development”.

In its major policy shift, India exhibited that it wants Nepal to move beyond India in the power trade and develop power sub-regionally within the framework of the BBIN (Bangladesh, Bhutan, India, and Nepal) agreement. Earlier, India wanted Nepal to have a power deal only with itself, but now it is in favour of Nepal going for power trade even with Bangladesh. Thus, the possibility of India giving access to Nepal and Bangladesh for power trade through an electricity transmission line from its territory has increased. To take advantage of this generous attitude of India, Bangladesh is likely to invest in hydropower projects in Nepal.
The Nepalese government cancelled the much controversial 1,200 MW Budhi Gandaki Hydropower Project awarded to the Chinese company for its failure to initiate work in time.
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India has made it clear to Nepal that it would not import power from such hydropower projects where there is direct or indirect involvement of the Chinese companies. Because of this change in India’s policy in power deal with Nepal, the attraction for Chinese investment in the hydropower sector in Nepal has been reduced. The impact of this policy change was soon realised after Prime Minister Deuba returned from Delhi to Kathmandu. The Nepalese government cancelled the much controversial 1,200 MW Budhi Gandaki Hydropower Project awarded to the Chinese company for its failure to initiate work in time. The government decided to begin the work on the project through domestic investment, which could now pave the way for more power sales from this project to India.

Prime Minister Deuba’s visit to India remained fruitful so far as it paved the way for settling the boundary-related issue through the dialogue and increasing the production of hydropower in Nepal, mainly with the Indian investment. Thrust on cross-border connectivity through infrastructure development and financial connectivity through the RuPay payment card system was the key for Nepal to benefit from India’s economic development. Strategically, the visit remained important for India so far as it aims at discouraging Chinese investment in Nepal and promoting sub-regional cooperation through power trade amongst BBIN member countries. Certain differences between Nepal and China mainly on account of the closing of the border and the positive attitude shown by India to boost the growth of the Nepalese economy developed a high level of trust between the two countries, which might ensure larger economic cooperation for the benefit of the people of the two countries in future.
 
Nepal, Bangladesh to discuss power trade, investment in 2 hydel projects
Bilateral power trade and attracting Bangladeshi investment in Nepal’s two hydropower projects will be the agenda for discussions during the high-level bilateral meeting expected to take place between the two countries in July.

Nepal will host the fourth meeting of the joint working group and joint steering committee between the two countries in Kathmandu.

A senior official at the Energy Ministry said that although Nepal proposed to hold the meeting in late June, the Bangladeshi side has requested for pushing the meeting to late July.

“Electricity export and import will be high on the agenda in the context that India also appears keen to assist in promoting regional energy connectivity,” said Madhu Prasad Bhetuwal, joint secretary and spokesperson at the Energy Ministry.

As the southern neighour’s territory lies between Nepal and Bangladesh, electricity trade between Nepal and Bangladesh cannot happen without India’s support.

During the third bilateral meeting of the joint working group and joint steering committee held in September last year, the two countries had agreed to develop a dedicated transmission line by taking India on board.

There, however, has not been any trilateral meeting regarding the issue, according to Bhetuwal.

As per the Joint Vision Statement on Power Sector Cooperation released in early April during Prime Minister Sher Bahadur Deuba’s visit to Delhi, Nepal and India agreed to expand cooperation in power sector by incorporating other partner countries under the Bangladesh, Bhutan, India and Nepal Initiative (BBIN) framework, subject to mutually agreed upon terms and conditions between all involved parties.

“But it is still a bilateral document,” said Bhetuwal. “India has been positive on the issues at multilateral forums such as BBIN and BIMSTEC too.”
BIMSTEC is the short form of Bay of Bengal Initiative for Multi-sectoral Technical and Economic Cooperation.

Currently, there are cross-border transmission lines between Nepal and India and India and Bangladesh. But there are no trilateral arrangements for electricity trade.

“If India helps, there is still a chance for trading of electricity between Nepal and Bangladesh through existing Indian infrastructure too,” said Bhetuwal. “But there has to be trilateral meetings and agreements.”

And India has already expressed its support to the idea of transmission interconnectivity among BIMSTEC member countries.

During the third BIMSTEC Energy Ministers’ Meeting held in Kathmandu in April, member countries approved the establishment of the BIMSTEC Grid Interconnection Coordination Committee to implement the provisions of the

Memorandum of Understanding for establishment of the BIMSTEC Grid Interconnection and its terms of reference.

Bangladesh has already agreed to import 500MW of electricity from the 900MW Upper Karnali Hydropower Project. Indian Company GMR has received the construction licence to develop this project.

Bhetuwal said that Bangladesh has also proposed Nepal to buy Bangladeshi power in the winter, and this would also be the topic of discussion during the proposed bilateral meeting.

Meanwhile, the two countries will also discuss developing two storage type hydropower projects—683MW Sunkoshi-3 Hydropower Project and Khimti Sivalaya Hydropower Project—with Bangladeshi investment, according to Bhetuwal.

When the two sides held a virtual meeting in September last year, they had agreed to work together to explore the possibility of developing the Sunkoshi-3 Hydropower Project with Bangladeshi investment.

As per the ministry’s press statement last year, the Bangladeshi side was supposed to send a team to conduct field visits at the proposed site of the Sunkoshi-3 Hydropower Project by December last year.

But the visit could not take place due to the Covid pandemic, according to Bhetuwal.

The project site straddles Ramechhap and Kavrepalanchok districts.

Its feasibility study has been completed but its Environment Impact Assessment Report has not yet been approved by the Ministry of Forest and Environment.

“The report has been submitted to the Ministry of Forest and Environment,” said Bhetuwal.

Authorities have, however, yet to determine the capacity of the proposed Khimti Sivalaya Hydropower Project to be developed in Dolakha and Ramechhap districts.

“Based on the ongoing feasibility study, its capacity might be in the range of 1100MW to 1720MW,” said Gopi Prasad Sah, information officer at the Department of Electricity Development.
kathmandupost.com

Nepal, Bangladesh to discuss power trade, investment in 2 hydel projects

The South Asian country has shown eagerness to import Nepal’s electricity and proposed to supply to Nepal during the dry season.
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India, Nepal, Bangladesh finalise tripartite power trade agreement draft​

India, Nepal, and Bangladesh have finalised the draft of a tripartite power trade agreement, a development in line with New Delhi’s efforts to forge greater energy connectivity across the neighbourhood, people familiar with the matter said.

The proposed pact, the first of its kind, has been agreed to by the three countries and is expected to be signed in the coming months, the people said. The agreement will also meet a long-standing demand from Nepal and Bangladesh to allow the trading of power through the Indian grid.

During Nepal Prime Minister Pushpa Kamal Dahal’s visit to New Delhi at the beginning of June, he and his Indian counterpart Narendra Modi unveiled plans for India to facilitate the export of hydropower from Nepal to Bangladesh. Dahal said a beginning will be made by exporting 50 MW, though the people said there is potential for this to be ramped up once the agreement is in place.

The move fits in with efforts by India in recent years to forge greater energy connectivity with Bangladesh, Bhutan, Nepal and Sri Lanka through electricity transmission networks and petroleum pipelines. An unstated objective is also to reduce the dependence of neighbours on China, they added.

In the past, electricity trade with neighbours was done under bilateral agreements. The finalisation of new guidelines for Cross-Border Trade of Electricity (CBTE) in recent years served as building blocks for the new arrangements. The guidelines, evolved after consultations with all stakeholders, allow neighbouring countries to purchase and sell power through the Indian grid and participate in Indian power exchanges, the people said.

“The neighbours can feed power into the Indian grid at one point and pull it out elsewhere, something that can help a country like Nepal to send surplus power from one region to another via India. There is a greater flow of energy and greater connectivity,” one of the people said.

The guidelines were drafted in such a way that power from any Chinese-funded power plant in a neighbouring country cannot be traded through the Indian grid, the people said.

“India acts as a fulcrum and the modalities are decided by market forces. India also benefits from transit fees,” the person cited above said.

In addition to constructing electricity transmission infrastructure in Nepal and Bangladesh, India has helped build cross-border pipelines with both countries. South Asia’s first trans-border petroleum pipeline, linking Motihari in Bihar to Amlekhgunj in Nepal and built at a cost of ₹324 crore, was launched in 2019 and has supplied 2.8 million metric tonnes of diesel to Nepal.

During Dahal’s visit, the two sides broke ground for the second phase of this pipeline to be built for ₹183 crore. The two sides also agreed to build a second pipeline to link Siliguri in India and Jhapa in Nepal.

In March this year, India and Bangladesh launched a ₹377-crore cross-border pipeline that is expected to supply one million metric tonnes of diesel annually from Assam’s Numaligarh refinery to northern parts of the neighbouring country. The length of the pipeline is 132 km and a 127 km stretch within Bangladesh was built with an Indian grant.

During the economic crisis in Sri Lanka, part of India’s support worth $4 billion consisted of lines of credit to help meet Colombo’s requirements for fuel and LPG. State-run Indian Oil Corporation supplied fuel through its subsidiary Lanka IOC in June last year when petrol pumps in Sri Lanka went dry. Sri Lanka and India have also agreed to jointly develop the oil tank farms in Trincomalee amid growing concerns over China’s influence in the country.

When Modi made his first foreign visit to Nepal in 2014, just three months after assuming office, he unveiled the “HIT” formula for forging links through highways, i-ways and trans-ways. He addressed Nepal’s key concerns – the oil should be exported through pipeline instead of trucks, bridges should be built over shared rivers and facilities created for exporting electricity.

“As a result of this diplomatic effort, we are already importing more than 450 MW of power from Nepal and the target is to take it to 10,000 MW,” a second person said. India also buys hydropower from Bhutan and such energy cooperation forms a key element of India’s “Neighbourhood First” policy.

Following problems in building an underwater transmission line, there is now a plan to construct an overhead power grid link with Sri Lanka. As in the case of Nepal, state-run power companies have been asked to explore the development of projects in Sri Lanka, the second person said.

The G20 summit to be held in September is expected to pass an India-backed declaration to ensure supply chain security with emphasis on regional cooperation, the second person said. As part of these efforts, there are plans to set up a regional power grid comprising Myanmar, Bhutan, Bangladesh, Nepal and Sri Lanka.
www.hindustantimes.com

India, Nepal, Bangladesh finalise tripartite power trade agreement draft

The move fits in with efforts by India in recent years to forge greater energy connectivity with Bangladesh, Bhutan, Nepal and Sri Lanka.
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