India, Nepal Sign Pact To Boost Rail Trade Connectivity

India and Nepal on Thursday signed a new agreement to expand rail-based freight movement between the two countries, strengthening cross-border trade and connectivity.

The pact will enable smooth railway freight transport between Jogbani (India) and Biratnagar (Nepal), including bulk cargo, under a broader definition.

It also extends liberalised transit access to major corridors: Kolkata-Jogbani, Kolkata-Nautanwa (Sunauli), and Visakhapatnam-Nautanwa (Sunauli).

The move enhances Nepal’s multimodal trade links with India and third countries.

Both sides exchanged a Letter of Exchange amending the Protocol to the Treaty of Transit.

India’s Commerce Minister Piyush Goyal and Nepal’s Industry, Commerce and Supplies Minister Anil Kumar Sinha witnessed the exchange.

The amendment allows direct rail connectivity along the Jogbani-Biratnagar rail link for both containerised and bulk cargo.

It will facilitate transport from Kolkata and Visakhapatnam ports to Nepal’s Customs Yard cargo station in Morang District, near Biratnagar.

The Jogbani-Biratnagar rail link, built with grant assistance from India, was jointly inaugurated by the Prime Ministers of both countries on June 1, 2023.

Officials said the new measures will further reduce logistics costs, boost trade efficiency, and strengthen economic cooperation.

The meeting reviewed progress on bilateral initiatives to enhance cross-border connectivity.

It also discussed developing Integrated Check Posts (ICPs) and other infrastructure to ensure smoother movement of goods and people.

India remains Nepal’s largest trade and investment partner, accounting for the bulk of its external trade.

The new agreement is expected to deepen commercial and logistical ties, giving Nepal easier access to Indian ports and global markets.

This rail pact follows the agreements the two countries signed on October 29.

They agreed to form joint ventures to develop high-capacity cross-border power transmission lines.

The Powergrid Corporation of India and the Nepal Electricity Authority signed the joint venture and shareholders’ agreements.

Union Power Minister Manohar Lal and Nepal’s Energy Minister Kulman Ghising witnessed the signing.

The new pacts mark a continued push toward seamless regional connectivity and energy cooperation between India and Nepal.

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