Implementation of rail service agreement soon

KATHMANDU, APR 30: 

Nepal and India will exchange letters for the final implementation of the Railway Service Agreement on May 2.

“The Letter of Exchange will help us implement the agreement on railway service between the two countries,” said joint secretary at the Ministry of Commerce and Supplies Naindra Prasad Upadhyaya. “We are almost done with the final procedure to prepare the Letter of Exchange and are hopeful that we will be able to forward it early this week,” he said.

Signed in 2004, the railway service agreement was reviewed two months earlier in March. 

During the comprehensive review meeting of the Railway Service Agreement between Nepal and India, India agreed to open all kinds of railway cargo for trade facilitation of Nepal with its southern neighbour and third countries. 

At the second comprehensive review meeting of the Railway Service Agreement, both Nepal and India agreed on the operation of an additional wagon and container during imports. Till date, India has only allowed operations of closed railway cargo. 

However, India agreed on the movement of railway cargo services between all Inland Container Depots and Integrated Check Posts of Nepal and Indian ports during the review meeting. 

Now cargo service movement between Birgunj Inland Container Depot and Kolkata and Haldia ports are unlimited. 

Nepal Freight Forwarders Association had also urged to end the monopoly of a single rail service company that operates freight services for Nepali importers. 

The Indian government has only allowed one company — Concorde Rail Service Company of Kolkata — to import cargo to Nepal in the current Railway Service Agreement.

However, the association has urged the Indian government to break the monopoly of Concorde and allow other private companies to operate freight services in the new agreement.

The new agreement made during the comprehensive meeting between the two countries needs approval from their respective governments in the form of a Letter of Exchange within two months of signing the agreement.

Meanwhile, the third meeting of the Railway Service Agreement between Nepal and India is scheduled to take place in New Delhi after six months.