Nepal-India signs agreement for railway service

Kathmandu: Nepal and India have signed a Letter of Exchange (LoE) to the Nepal – India Rail Services Agreement (RSA) 2004. Organizing a virtual ceremony today to signed copies of the LoE, between the two governments. 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.
With the entering into force of the LoE, all authorized cargo train operators which include public and private container trains operators, automobile freight train operators, special freight train operators, or any other operator authorized by Indian Railways will be able to utilize the Indian railway network to carry Nepal’s container and other freight – both bilateral between India and Nepal or third country from Indian ports to Nepal.
Further, 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 liberalization will particularly 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/Birgunj routes) over the Indian Railways network as per IR standards and procedures.
The LoE also updates several other portions of the Nepal – India RSA and brings those in line with the latest operational and infrastructure status of Indian and Nepalese Railways.