India's power sector regulator CERC today suggested establishing a South Asian power trading market to help ease acute electricity shortages facing many nations in the region.

Inaugurating three-day global power exchanges conference in New Delhi , the Chairperson of Central Electricity Regulatory Commission (CERC) Pramod Deo said a SAARC sub regional power trading market will be beneficial to member countries. It will help in reaping the benefit of competition and efficiency through trading on power exchanges.

He said, such a market would help in trading electricity between India and other countries such as Bangladesh, Nepal, Bhutan and Sri Lanka.

Mr Deo said that with political will and institutional framework in place, South Asian nations can have regional power trading market.

He said , Pakistan has also shown interest in importing electricity from India.

AIR correspondent reports that energy demand in the SAARC region is estimated to grow at an annual rate of five per cent.

India has power transmission links with Bhutan and Nepal while discussions are progressing for similar lines with Bangladesh and Sri Lanka.