India, Nepal Revise Railway Service Agreement
9 July 2021
The Note Verbales and Letter of Exchange for the revision of the Railway Service Agreement between India and Nepal was signed and took effect on 9 July 2021. This move is set to boost rail transport between the two neighboring countries. The revision to the rail agreement includes:
- Authorization to all cargo train operators to utilize the Indian railway network to carry Nepal-bound freight, including bilateral cargo between Indian and Nepal and/or third country freight transiting through Indian ports to Nepal. This move is set to increase efficiency and cost- competitiveness of Nepal-bound cargo. Operators allowed include public and private container train operators, automobile freight train operators, special freight train operators, and/or any other operator authorized by the Indian Railways.
- Allowing different categories of wagons that can carry freight on Indian Railways network within India to carry cargo to and from Nepal. This is set to reduce transportation costs for goods, such as automobiles, which are transported in special wagons.
- Wagons owned by Nepal Railway Company will be authorized to carry Nepal-bound freight (inbound and outbound on Kolkata/Haldia to Biratnagar/Birganj routes) over the Indian Railways network as per standards and procedures of Indian Railways.
The ceremony was led by Mr. Sanjay Kumar Mohanty, Member (Operations and Business Development), Ministry of Railways of the Government of India, and Mr. Shri Dinesh Bhattarai, Secretary, Ministry of Commerce, Industry and Supplies of the Government of Nepal. Representatives from the Ministry of Railways, Embassy of India, Kathmandu, Northern Division, Ministry of External Affairs, India and South Asia Division of Nepalese Ministry of Foreign Affairs were present in the ceremony.
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