Kolkata-Biratnagar railway cargo to ease business between Nepal and India: Nepal's Foreign Ministry

In a regular fortnightly press briefing held at the ministry, Joint Secretary Lok Bahadur Poudel Chhetri said that it will ease business between the nations.

"Under the Nepal-India Transit Treaty, the Kolkata-Biratnagar railway cargo transportation has started from 1st of Shrawan 2083. In the process of transporting goods imported from third countries to the Nepalese border through Indian soil. After the start of this railway cargo, it will reduce trade costs, transportation will be safe and reliable, and goods will be imported in less time. It is also believed that the delay charges, container detention charges, and additional burden of road transportation incurred by Nepali importers during transportation will be reduced, which will significantly reduce the overall trade transit, help in trade facilitation, and strengthen the competitiveness of Nepali industrialists," Chhetri said.

The service officially began on July 17, marking a major milestone in Nepal's transit and trade logistics by extending direct rail access beyond Birgunj for the first time.

Under the Nepal-India Transit Treaty, goods imported from third countries are transported through Indian territory to Nepal's border. In line with the treaty, which allows Nepal to use Indian roads, rail and inland waterways for third-country imports and exports, rail cargo transportation from Kolkata to Biratnagar has now commenced.

On November 4 last year, India's Central Board of Indirect Taxes and Customs (CBIC), under the Department of Revenue, amended the Electronic Cargo Tracking System (ECTS) Regulations, expanding the scope of rail cargo movement from the ports of Kolkata, Haldia and Visakhapatnam.

Nepal has approved a letter of exchange amending the protocol of the Nepal-India Transit Treaty 2023, which allows the import of all types of goods--both containerised and bulk cargo--by rail to the Biratnagar Integrated Check Post (ICP) and Nautanwa, near Bhairahawa.

Until now, the transit treaty permitted rail cargo movement only to the Birgunj ICP. The amended protocol allows all cargo trains to operate through Biratnagar ICP and Nautanwa. Previously, only four commodities--coal, clinker, cement and fertiliser- could be transported by rail from third countries.

India remains Nepal's largest trading partner. According to the Department of Customs, Nepal exported goods worth NRs 224.68 billion to India in the previous fiscal year, while imports from India totalled NRs 1.07 trillion, resulting in a trade deficit of NRs 846.51 billion. Kolkata remains Nepal's nearest seaport.

India and Nepal first signed the Treaty of Trade and Transit in 1960, which granted Nepal transit access through Indian territory. The treaty has since been renewed periodically and was most recently revised in June 2023 for seven years, with provision for an automatic renewal for another seven years.

India continues to provide transit facilities for almost all of Nepal's third-country trade. Nepal's overseas trade is primarily routed through the ports of Kolkata, Haldia and Visakhapatnam, while trade with Bhutan and Bangladesh also passes through Indian territory. (ANI)