Nepal, India and Bangladesh on Thursday signed a tripartite agreement to facilitate cross-border electricity trade, officials here said.

India, Nepal, and Bangladesh on Thursday signed a trilateral agreement to export 40 Megawatts of electricity from Nepal to Bangladesh via India’s power grid, a development hailed and welcomed by officials of all three nations involved.

India, Nepal, and Bangladesh inked an agreement Thursday to trade electricity, according to media reports. The first of its kind deal was signed in Kathmandu, allowing Nepal to sell electricity to a third country, said the Kathmandu Post. Nepal’s energy trade was previously taking place only with its southern neighbor, India.

Nepal, India, and Bangladesh have signed a trilateral agreement to trade 40 megawatts of electricity. The historic deal, signed in Kathmandu on Thursday, allows Nepal to sell electricity to a third country for the first time. So far, Nepal’s energy trade has been taking place only with the southern neighbour India.

A 40-megawatt electricity agreement between Nepal, Bangladesh, and India was signed in the presence of Syeda Rizwana Hassan, adviser for Environment, Forest, Climate Change, and Water Resources, on Thursday.

Nepal, India and Bangladesh on Thursday signed a long-awaited tripartite agreement to facilitate cross-border electricity trade, officials here said.

As per the agreement, Nepal will export its surplus electricity to Bangladesh via India from June 15 to November 15 every year.