New Delhi: All the cargo train operators would be utilizing the Indian railway network to carry all containers bound for Nepal, which will allow a liberalization in the market and the efficiency will increase while being cost-effective between Nepal and Indian rail ports eventually benefitting the Nepalese Consumer and boosting the rail transportation between the two nations.
These cargo train Operators came into effect from 9 July 2021, which includes public and private container trains Operators, automobile freight train operators, special freight train operators, or any other operator authorized by Indian Railways.
A Letter of Exchange (LoE) was signed between the officials of India & Nepal that allows 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.
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 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.
From the Indian side, the ceremony was led by Shri Sanjay Kumar Mohanty, Member (Operations and Business Development), Ministry of Railways. From the Nepalese side, it was led by Shri Dinesh Bhattarai, Secretary, Ministry of Commerce, Industry and Supplies, 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 were present too.
The current LoE was finalized and signed on 28th June 2021 by Govt. of Nepal which was acknowledged by the Ministry of Railways (Govt. of India) by signing the LoE on 29 June 2021.