India and Bangladesh seek to improve trade and energy connectivity

bilateral trade land ports electricity exports cross-border supply chains infrastructure investment

Indian businesses are advocating for the full operationalization of land ports between India and Bangladesh to mitigate rising raw material costs and supply chain disruptions. During recent discussions, the Confederation of Indian Industry (CII) and other business representatives proposed enhanced cooperation, including the potential establishment of a joint task force for infrastructure investment and a trust to develop digital infrastructure.

Simultaneously, negotiations are underway regarding electricity exports from India to Bangladesh. India has proposed a Settlement Nodal Agency (SNA) charge of 0.005 Indian rupees per unit to cover grid operations and cross-border transaction settlements. While the Bangladesh Power Development Board (BPDB) noted that this charge is separate from the electricity price, failure to reach an agreement could complicate the import of 1,160 megawatts of electricity through NTPC Vidyut Vyapar Nigam Ltd (NVVN).