The Investment Board has sought the opinion of the Attorney General regarding GMR’s financial management in the Upper Karnali project.
Kathmandu — Bangladesh will no longer purchase 500 megawatts of electricity from the Upper Karnali Hydropower Project. The import of electricity from Upper Karnali has become uncertain after Bangladesh’s interim government decided to cancel all agreements made under the Special Energy Act.
India had proposed to export electricity through a 117-kilometer-long 765 kV transmission line. The previous government led by the Awami League had supported the proposal. However, the current interim government of Bangladesh has not shown interest in implementing the proposal.
Chairman of the Bangladesh Power Development Board (BPDB), Rezaul Karim, stated that the proposed agreement with GMR has also been canceled, as the government has already decided to suspend all agreements made under the Special Energy Act. On December 5, 2024, a proposal was agreed upon between BPDB, India’s NTPC Vidyut Vyapar Nigam (NVVN), and GMR Upper Karnali Hydropower Ltd. Negotiations had begun in 2016, and a letter of intent was issued in January 2020. As security for the proposal, GMR Upper Karnali Hydropower Ltd. had deposited 5 million US dollars.
According to Investment Board spokesperson Pradyumna Upadhyaya, GMR has not provided any formal information on the matter. “We came to know informally, but GMR has not communicated anything officially. Selling electricity is something that happens after production,” he said. “This is an internal matter of GMR, and it will not hinder the ongoing process related to the Upper Karnali Hydropower Project.” He added that if selling 500 megawatts of electricity to Bangladesh is not possible, there is a possibility of selling it in the Indian market instead.
In May 2023, a draft agreement was signed during the Bangladesh–India–Nepal Joint Steering Committee meeting at the energy secretary level, in the presence of Bangladesh’s Energy Secretary Mohammad Habibur Rahman and India’s Energy Secretary Alok Kumar. In February 2025, SN Barde, Chairman of GMR Upper Karnali Hydropower Ltd., expressed to Bangladesh’s Energy Secretary the company’s intention to formalize a Power Sale Agreement (PSA) for exporting electricity from Nepal. Upper Karnali Hydropower Ltd. had proposed a 25-year power sale beginning in 2029.
Meanwhile, the Investment Board has sought an opinion from the Office of the Attorney General regarding the process of advancing financial management for the 900-megawatt Upper Karnali Hydropower Project, awarded to the Indian company GMR (Mallikarjun Grandhi Rao). A petition has also been filed concerning the project’s board members.
Although the Supreme Court has dismissed the writ petition, the full text of the verdict has not yet been released, which is why the opinion of the Attorney General has been sought. GMR had submitted documents related to financial management back on January 15, 2025, but the Investment Board has not yet approved them.
Source: Kantipur
