As proposed by Indian Prime Minister Dr. Man Mohan Singh, South Asian countries are all set to form an energy ring to minimise the power shortage in the region.

To finalise the matters, a meeting of the SAARC energy ministers is scheduled for Wednesday in New Delhi. The meeting will discuss about the projects to improve environment for energy trading amongst the member countries. The ring consists of trans-national lines for trade in power, gas and oil.

“Facilitating and promoting trade in energy in South Asia has been identified as one of the key areas for co-operation. In view of the potential for regional co-operation, an energy ring has been conceptualised in SAARC,” reports quoted Indian energy minister Sushilkumar Shinde as saying.

Nepal has interconnections grid with India and India also has with Bhutan through which the power among Nepal, India and Bhutan can exchanged. Technical studies were being conducted to explore the feasibility of similar transmission links with Sri Lanka and Bangladesh, the minister informed.

SAARC had formed a committee, which has prepared a survey report on availability of surplus electricity demand as well as load forecast for the next 10-15 years in the region. The meeting on Wednesday will also focus on the report, which states the possibility of inclusion of BIMSTEC in the energy trade circle.

In 1998, South Asian Regional Initiatives (SARI), a forum of Bangladesh, Bhutan, Nepal and India, had proposed to create 80,000 MW power reserve to ensure a dependable supply of electricity to member states.