Nepal is likely to get access to more ports of India for overseas trade as India may allow Nepal to use inland waterways in three routes and movement of bulk cargos via railway from Indian seaports to major Nepal-India border points.
“India has expressed its consent during Nepal-India Transit Treaty Review meeting that kicked off in Kathmandu today,” according to a press note from Ministry of Industry, Commerce and Supplies.
The government teams from both the countries discussed various issues relating to simplifying Nepal’s transit routes via India. The bilateral meeting will conclude on Wednesday.
Nepal has been seeking to use three inland waterways – Kolkata-Kalughat-Raxaul, Kolkata-Sahebgunj-Biratnagar, and Kolkata-Varanasi-Raxaul routes – on Ganges River expanding its transit options to the sea.
During the talks in New Delhi last October, the Indian side had agreed on principle to allow Nepal to use these inland waterways. India has developed a waterway on the Ganges River connecting Varanasi and the seaport of Haldiya in Kolkata. Access to the Indian waterways is expected to facilitate efficient movement of cargo imported from third countries to Nepal.
According to the joint secretary of Ministry of Industry, Commerce and Supplies Nabaraj Dhakal, India is also positive toward facilitating railway-based transportation of bulk cargo from Kolkata and Vishakhapatnam seaports of India to Jogwani and Nautanwa, Sunauli, at the Nepal-India border. “Bulk cargo includes fertilizers, sugar, soybean, salt, animal feed and raw plastic materials among others,” he said, adding that the bulk cargo items currently brought from third countries via Kolkata, Haldiya and Vishakhapatnam ports are imported to Nepal only through Birgunj border point. “Nepal at present has been using West Bengal’s Kolkata and Haldiya ports as well as Visakhapatnam Port of Andhra Pradesh.”
Dhakal is leading the Nepali team whereas joint secretary of the Department of Commerce at the Indian Ministry of Commerce and Industry Bhupinder Singh Bhalla is leading the Indian delegation.
The two countries might ink the deal tomorrow, if everything goes smoothly.
According to former joint secretary at the Ministry of Industry, Commerce and Supplies Ravi Shankar Sainju, the use of additional ports will facilitate Nepal’s overseas trade. “Dhamra Port of Orissa can be an alternative to the infrastructural hurdles at Kolkata Port and the long distance to Visakhapatnam Port,” the government officials opined, adding that Dhamra Port is 1806-km from Nepal’s Krishnanagar. “This new port is 400-km near than Visakhapatnam Port and 300-km near than Kolkata.”
Dhamra Port, which is operated by private sector, provides modern facilities and can accommodate up to 25,000 metric tonnes of goods.
Traders believe this port would be useful for the bulk of Nepal-bound goods from third countries. According to traders, Nepali importers can benefit from Mundra Port of Gujrat as well since it is connected to railway network right up to Krishnanagar.
They have long been demanding to allow diversifying the bulk cargo transport as it often takes more than a month for bulk cargos to reach Birgunj due to various hassles. Citing a lack of railway infrastructure, India had been saying that it was difficult to provide bulk cargo facility at other border points.
In 2012, the Nepal-India Inter-government Committee had agreed to expand the bulk cargo facility to Biratnagar and Bhairahawa border points. The agreement, however, was not implemented as the letter of exchange was not issued.
“India has expressed its consent during Nepal-India Transit Treaty Review meeting that kicked off in Kathmandu today,” according to a press note from Ministry of Industry, Commerce and Supplies.
The government teams from both the countries discussed various issues relating to simplifying Nepal’s transit routes via India. The bilateral meeting will conclude on Wednesday.
Nepal has been seeking to use three inland waterways – Kolkata-Kalughat-Raxaul, Kolkata-Sahebgunj-Biratnagar, and Kolkata-Varanasi-Raxaul routes – on Ganges River expanding its transit options to the sea.
During the talks in New Delhi last October, the Indian side had agreed on principle to allow Nepal to use these inland waterways. India has developed a waterway on the Ganges River connecting Varanasi and the seaport of Haldiya in Kolkata. Access to the Indian waterways is expected to facilitate efficient movement of cargo imported from third countries to Nepal.
According to the joint secretary of Ministry of Industry, Commerce and Supplies Nabaraj Dhakal, India is also positive toward facilitating railway-based transportation of bulk cargo from Kolkata and Vishakhapatnam seaports of India to Jogwani and Nautanwa, Sunauli, at the Nepal-India border. “Bulk cargo includes fertilizers, sugar, soybean, salt, animal feed and raw plastic materials among others,” he said, adding that the bulk cargo items currently brought from third countries via Kolkata, Haldiya and Vishakhapatnam ports are imported to Nepal only through Birgunj border point. “Nepal at present has been using West Bengal’s Kolkata and Haldiya ports as well as Visakhapatnam Port of Andhra Pradesh.”
Dhakal is leading the Nepali team whereas joint secretary of the Department of Commerce at the Indian Ministry of Commerce and Industry Bhupinder Singh Bhalla is leading the Indian delegation.
The two countries might ink the deal tomorrow, if everything goes smoothly.
According to former joint secretary at the Ministry of Industry, Commerce and Supplies Ravi Shankar Sainju, the use of additional ports will facilitate Nepal’s overseas trade. “Dhamra Port of Orissa can be an alternative to the infrastructural hurdles at Kolkata Port and the long distance to Visakhapatnam Port,” the government officials opined, adding that Dhamra Port is 1806-km from Nepal’s Krishnanagar. “This new port is 400-km near than Visakhapatnam Port and 300-km near than Kolkata.”
Dhamra Port, which is operated by private sector, provides modern facilities and can accommodate up to 25,000 metric tonnes of goods.
Traders believe this port would be useful for the bulk of Nepal-bound goods from third countries. According to traders, Nepali importers can benefit from Mundra Port of Gujrat as well since it is connected to railway network right up to Krishnanagar.
They have long been demanding to allow diversifying the bulk cargo transport as it often takes more than a month for bulk cargos to reach Birgunj due to various hassles. Citing a lack of railway infrastructure, India had been saying that it was difficult to provide bulk cargo facility at other border points.
In 2012, the Nepal-India Inter-government Committee had agreed to expand the bulk cargo facility to Biratnagar and Bhairahawa border points. The agreement, however, was not implemented as the letter of exchange was not issued.
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