Asian Development Bank (ADB) has decided to provide 120 million dollars loan to upgrade the India-Bangladesh electricity network.
This loan fund will allow Bangladesh to meet its increasing power demand from India and support power exchanges across South Asia region.
It will also double the existing capacity of the inter-grid connectivity which links the power grid of eastern India at Baharampur with the power grid of western Bangladesh at Berhamara.
The two electricity networks between both countries were first connected in December 2013 under a previous ADB project. Under this project India exports 500 MW power to Bangladesh.
This interconnectivity project is a considered as first step in the direction of a South Asia Regional Electricity Grid which will facilitate power exchanges between countries of the region.
The India-Bangladesh electricity network project is part of ambitious South Asia Subregional Economic Co-operation (SASEC) Programme which aims at improving economic opportunities through cross-border links in trade, road and rail, power networks. It is expected to be completed by June 2016.