New Delhi, Nov 13 (NationPress) India and Nepal have formalized a new agreement aimed at enhancing the movement of rail-based freight between these two neighboring nations.

This agreement will streamline railway freight operations between Jogbani in India and Biratnagar in Nepal, covering bulk cargo under a broader definition. The liberalization applies to vital transit corridors including Kolkata-Jogbani, Kolkata–Nautanwa (Sunauli), and Visakhapatnam–Nautanwa (Sunauli), thereby reinforcing multimodal trade connectivity and enhancing Nepal’s trade with third nations.

During the signing ceremony, a Letter of Exchange was exchanged, modifying the Protocol to the Treaty of Transit between India and Nepal, officiated by India’s Commerce Minister Piyush Goyal and his counterpart from Nepal, Anil Kumar Sinha.

This Letter of Exchange establishes direct rail connectivity along the Jogbani–Biratnagar rail link for both containerized and bulk cargo, facilitating transport from the ports of Kolkata and Visakhapatnam to the Nepal Customs Yard cargo station in Morang District, near Biratnagar. This rail link, built with financial support from the Government of India, was inaugurated jointly by the Prime Ministers of India and Nepal on June 1, 2023.

The discussions also acknowledged ongoing bilateral efforts to boost cross-border connectivity and trade facilitation, which include the establishment of Integrated Check Posts and additional infrastructure.

India continues to be Nepal’s largest trade and investment ally, holding a substantial share of its external trade. These latest measures are anticipated to further solidify economic and commercial ties between the two nations and beyond.

This agreement follows closely on the heels of earlier agreements signed on October 29, which established two joint venture entities for the development of high-capacity cross-border power transmission lines.

The joint venture and shareholders’ agreements were executed between Powergrid, a Maharatna Central public sector enterprise of India, and the Nepal Electricity Authority, in the presence of Union Power Minister Manohar Lal and Nepal’s Energy, Water Resources, and Irrigation Minister Kulman Ghising.

The agreements pave the way for the creation of two joint venture entities, one in India and the other in Nepal, dedicated to establishing cross-border power transmission infrastructure.