The Union Cabinet has approved the proposal of the Ministry of Power for Signing of MoU for the establishment of BIMSTEC Grid Interconnection, Bureaucracy Today has learnt.
The MoU will be signed among member states of BIMSTEC at the upcoming 3rd BIMSTEC Energy Ministers' Meeting to be held in Nepal.
This MoU will provide a broad framework for the Parties to cooperate towards the implementation of grid interconnections for the trade in electricity with a view to promoting rational and optimal power transmission in the BIMSTEC region. The MoU will facilitate; the optimization of using the energy resources in the region, the promotion of efficient, economic, and secure operation of power system, the necessity of optimization of capital investment for generation capacity, and power exchange through cross border interconnections.
The initiative will provide energy security in the region as it will enable the member states to share their surplus electricity with each other.
The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is an international organisation involving a group of countries in South Asia and South East Asia viz. Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal.
The "Plan of Action for Energy Cooperation in BIMSTEC" was formulated in the first BIMSTEC Energy Ministers' Conference held in New Delhi on October 4, 2005.
Five meetings of Task Force for BIMSTEC on Trans-power Exchange were held and the draft MoU for establishment of BIMSTEC Grid Interconnection was finalized by the Task Force on March 16 2015.