India has agreed to allow Nepal to transport all types of bulk cargo via the railway route to Jogbani-Biratnagar border, facilitating the movement of rail-based freight from India’s Kolkata and Visakhapatnam sea ports.

Until now, Nepal was permitted to use the railway service through the Biratnagar–Jogbani border point for only four types of bulk cargo at a time. The new agreement enables direct rail connectivity along the Jogbani–Biratnagar rail link for both containerised and bulk cargo.

According to the Ministry of Industry, Commerce and Supplies (MoICS), Nepal and India on Thursday signed a Letter of Exchange (LoE) to amend the protocol related to the bilateral Treaty of Transit. The LoE was signed during a meeting between Nepal’s Minister for Industry, Commerce and Supplies Anil Kumar Sinha and India’s Minister for Commerce and Industry Piyush Goyal in New Delhi.

As part of the new arrangement, India has also agreed to extend a similar facility for transporting bulk cargo from Kolkata and Visakhapatnam sea ports up to the Nautanwa–Sunauli border point, paving the way for direct rail access to Bhairahawa as well.

Nepal and India first signed the Treaty of Trade and Transit in 1960. The most recent renewal of the treaty took place on June 1, 2023. The agreement, which governs transit rights and routes between the two countries, is renewed every seven years.

Officials said the new understanding is expected to strengthen multimodal trade connectivity and boost Nepal’s trade with third countries. The system is also anticipated to help reduce transit time and costs, easing cross-border trade between the two neighbors.

During the meeting, Minister Sinha urged his Indian counterpart to simplify the certification process of the Bureau of Indian Standards (BIS), as Nepali exporters have often faced delays due to lengthy certification procedures.

The two ministers also discussed ongoing initiatives to enhance cross-border connectivity and trade facilitation, including the development of Integrated Check Posts (ICPs) and related infrastructure.

At present, India allows Nepal to use its Kolkata and Visakhapatnam ports for third-country trade. Nepal has also been requesting access to Mundra Port (Gujarat) and Dhamra Port (Odisha), though that demand has not yet been fulfilled.