Tripura State Electricity Corporation Limited (TSECL) has earned ₹1,165.37 crore over the past ten years by supplying electricity to neighbouring Bangladesh, state Power Minister Ratan Lal Nath said in Agartala on Wednesday, 12 August. The cross-border power trade, which began in March 2016, has grown from an initial 100 MW to a record 200 MW supplied as recently as 9 August.

How the Power Trade Grew

TSECL began exporting electricity to Bangladesh at ₹5.50 per unit when the agreement was first signed in 2016. The rate has since risen to ₹6.76 per unit, reflecting both inflation adjustments and renegotiated terms. The agreement has been renewed twice with the consent of the Central government, underscoring the strategic importance New Delhi attaches to energy diplomacy in the Northeast.

Power is drawn primarily from the 726-MW ONGC Tripura Power Company (OTPC) gas-based plant at Palatana, located roughly 65 km south of Agartala in southern Tripura. The plant — a joint venture between Oil and Natural Gas Corporation (ONGC), Infrastructure Leasing and Financial Services Ltd (IL&FS), IDFC Bank, and the Tripura government — was commissioned in June 2013 at a cost of ₹10,000 crore. It currently meets around 35% of the electricity requirement of seven Northeastern states, excluding Sikkim, according to a senior TSECL official.

Bangladesh Seeks Higher Supply

The Bangladesh government has formally requested TSECL to raise the supply to at least 250 MW, citing a significant and growing electricity shortage. Minister Nath confirmed that discussions are ongoing, but cautioned that any capacity increase would require fresh Central government clearances, a new inter-governmental agreement, and completion of associated formalities.

This comes amid a broader energy crisis in Bangladesh, where rising consumer demand has outpaced domestic generation capacity. Tripura's geographic position — sharing an 856-km international border with Bangladesh and surrounded by the country on three sides — makes it a natural and cost-efficient conduit for cross-border power supply.

Palatana: A Symbol of India-Bangladesh Cooperation

The ₹10,000-crore Palatana power plant itself stands as a landmark in bilateral cooperation. Bangladesh facilitated the transportation of heavy equipment — including turbines and machinery — through its territory to reach the landlocked construction site in southern Tripura. That logistical arrangement was critical to the plant's completion and remains a frequently cited example of how infrastructure cooperation between New Delhi and Dhaka can benefit both nations.

Nepal Supply and Future Capacity

In a lesser-known chapter, TSECL also supplied 40 MW of electricity to Nepal in 2020. That arrangement was subsequently discontinued after Nepal did not renew its request to Indian authorities for continuation, according to the senior TSECL official.

Looking ahead, Minister Nath said Tripura's generation capacity is expected to rise substantially with the commissioning of proposed and under-construction power plants, alongside rapid expansion of solar energy generation. If Central clearances come through, the state could be positioned to meet Bangladesh's 250 MW request — and potentially go beyond it.