India-Nepal Meeting Agrees to Amend Trade and Transit Treaties, Railway Service Agreement
7 June 2019
The Governments of India and Nepal have agreed to update the Trade and Transit Treaties and the Railway Service Agreement on a reciprocal basis. A joint commerce secretary-level meeting was held to consider these bilateral agreements on 6-7 June 2019 in New Delhi, India.
According to reports in the Himalayan Times, the meeting agreed upon several amendments. These include
- Adding inland waterways as a means of transport for Nepal-bound freight;
- Allowing rail operators from Nepal and private rail operators from India to transport Nepal-bound cargo transiting through the Indian ports of Visakhapatnam, Haldia, and Kolkata;
- Expanding bulk cargo transport to Biratnagar, Bhairahawa, Nepalgunj, Janakpur, and Dhangadhi; and
- Adding other Indian ports as major customs points for Nepal-bound cargo.
Mr. Nabaraj Dhakal, Joint Secretary, Ministry of Industry, Commerce, and Supplies of the Government of Nepal, emphasized that adding other rail operators from India and Nepal to transport Nepal-bound cargo will be implemented based on the mutual benefit of both countries. This update is set to help Nepali importers save around $63.5 million (Rs 7 billion) annually.
The meeting also considered the possibility of opening integrated check points in Biratnagar, Nepalgunj, and Janakpur. Plans to expand the railway cargo service Dhamra and Mundra ports in Odisha and Gujarat.
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