India has started transmission of electricity to Bangladesh under the 2012 agreement between the two countries to export 250 megawatt of power. Initially, in the test-run, ahead of the actual transmission system that began on October 5, 2013, 50 MW of power was supplied to Bangladesh. The Bangladesh Power Development Board (BPDB) and Indian NTPC Vidyut Vyapar Nigam Ltd ( NVVN), a subsidiary of India's National Thermal Power Corporation (NTPC), inked a deal on February 28, 2012 to import 250 MW of electricity, following up on a memorandum of understanding (MoU) signed during Bangladeshi Prime Minister, Sheikh Hasina's 2010 visit to New Delhi.
According to Bangladeshi officials, the BPDB will import 250 MW of electricity from Indian government's unallocated quota, while another 250 MW is set to be supplied by an Indian private firm called PTC India Limited. The line connecting Bangladesh to India is expected to help establish a SAARC (South Asian Association for Regional Cooperation) electricity grid, with discussion for an undersea power link with Sri Lanka also underway.
Bangladesh's overall electricity generation is now hovering around 6,000 MW, but a demand of over 7,500 MW has caused a severe power shortage in the country. With an estimated projection of electricity consumption at 24,000 MW by 2021, Bangladesh also plans to import power from its neighboring countries Nepal, Bhutan and Myanmar.