Nepal

Another milestone under “Neighbourhood First” policy: India, Nepal ease cargo movement rules

Post By : Basundhara Choudhury
Post Date : July 10, 2021
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In another milestone under India’s “Neighbourhood Policy”, India and Nepal have consented to allow cargoes in all categories of wagons that can carry freight on Indian Railways network within India to also carry freight to and from Nepal.

This liberalisation will allow market forces to come up in the rail freight segment in Nepal, and is likely to boost efficiency and cost- competitiveness.

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

It comes into effect from 9 July, 2021 after the formal exchange of Note Verbales and signed copies of Letter of Exchange between officials of India & Nepal.

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

This 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 authorised 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.

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

“With the entering into force of the LoE, all authorised cargo train operators, which include public and private container trains operators, automobile freight train operators, special freight train operators or any other operator authorised by Indian Railways, will be able to utilise the Indian railway network to carry Nepal’s container and other freight — both bilateral between Indian and Nepal or third country from Indian ports to Nepal,” the statement read.

It may be noted that the current LoE has been finalised and signed on 28th June, 2021 by Goverment of Nepal which was acknowledged by Ministry of Railways (Govt. of India) by signing the LoE on 29 June, 2021.  It comes into effect from 9 July, 2021 after the formal exchange of Note Verbales and signed copies of LoE.

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