Nepal's Minister for Energy, Water Resources and Irrigation, Barsha Man Pun and Minister of State for Power, Energy and Mineral Resources of Bangladesh, Nasrul Hamid signed the MoU in Kathmandu Friday evening.
It aims to increase collaboration in electricity generation, grid connectivity, energy efficiency, renewable energy and development of hydro power for mutual and regional benefit.
It also envisage to encourage industrialists of Nepal and Bangladesh to invest in power sector and tap huge hydro power potential of South Asia by regional and sub regional cooperation to uplift the living standard of people in the region.
As per MoU a Joint Secretary level working group and Secretary level steering committee would be formed to take forward the task of power cooperation.
The two bodies would convene their meetings within next two months to determine the future course of action.