Nepal’s plans to increase electricity exports to Bangladesh via India have been hampered after India’s Central Electricity Authority refused approval for an additional 20 MW. Currently, Nepal exports 40 MW of electricity to Bangladesh through Indian transmission lines, but requests to raise this to 60 MW have been denied. Indian authorities cite transmission constraints as the reason for withholding approval, effectively stalling the proposed increase. This decision impacts Nepal’s revenue projections from electricity exports and potential energy trade benefits. The existing 40 MW export agreement remains unaffected for now. Further discussions between Nepal and India will be necessary to resolve the transmission issues and potentially revisit the export expansion plan. This situation highlights the challenges Nepal faces in leveraging its hydropower potential for regional energy trade, dependent on India’s infrastructure and approvals.