Rail transportation between India and Nepal got a major boost on Friday with coming into force of authorization to all cargo train operators to utilize the vast Indian railway network to carry all containers bound for Nepal, whether bilateral freight between Indian and Nepal or third country freight from Indian ports to Nepal.

This liberalization will allow market forces to come up in the rail freight segment in Nepal and is likely to increase efficiency and cost- competitiveness, eventually benefiting the Nepalese consumer, IBNS said. 

These cargo train cperators, include public and private container trains operators, automobile freight train operators, special freight train operators or any other operator authorized by Indian Railways.

It comes into effect from 09.07.2021 after the formal exchange of Note Verbales and signed copies of the Letter of Exchange (LoE) between officials of India & Nepal.

After this LoE, all kinds of cargoes in all categories of wagons that can carry freight on the Indian Railways network within India can also carry freight to and from Nepal.

The move will reduce transportation costs for automobiles and certain other products whose carriage takes place in special wagons.

Wagons owned by Nepal Railway Company will also be authorized to carry Nepal-bound freight (inbound and outbound on Kolkata/Haldia to Biratnagar/Birganj routes) over the Indian Railways network as per IR standards and procedures, read a government statement.

The signing of this LoE marks annother milestone in India’s efforts to enhance regional connectivity under the “Neighbourhood First”  policy.

From the Indian side, the ceremony was led by Sanjay Kumar Mohanty, Member (Operations and Business Development), Ministry of Railways.

From the Nepalese side, it was led by Dinesh Bhattarai, Secretary, Ministry of Commerce, Industry and Supplies, Also present were representatives from Ministry of Railways, Embassy of India, Kathmandu, Northern Division, Ministry of External Affairs, India and South Asia Division of Nepalese Ministry of Foreign Affairs.(SAM)