Nepal and India today finalised the operation modality for allowing Nepal to operate its cargo vessels on three inland waterways of India paving the way for Nepal to ferry its cargo vessels with its flag.
Concluding the two-day Nepal-India Transit Treaty Review meeting in Kathmandu today, India agreed to allow operation of Nepali vessels on the Ganges River that runs parallel of Nepal’s southern border, according to a press note issued by the Ministry of Industry, Commerce and Supplies.
According to spokesperson of the ministry Navaraj Dhakal, the two countries signed the standard of procedures during the joint secretary level bilateral meeting. “Once the provision come into effect, Nepal can ferry any suitable size cargo vessels along the prescribed water routes,” he said, adding that Nepal has been seeking to use three inland waterways on Ganges River that include the Kolkata-Kalughat-Raxaul, Kolkata-Sahebgunj-Biratnagar, and Kolkata-Varanasi-Raxaul routes. “India has developed a waterway on the Ganges River, connecting Varanasi and the seaport of Haldiya, Kolkata.”
By utilising these water routes Nepal can expand its transit options to the sea to carry out the third country trade,” said Dhakal, who led the Nepali team, whereas joint secretary of the Department of Commerce at the Indian Ministry of Commerce and Industry Bhupinder Singh Bhalla led the Indian delegation in the bilateral meeting.
“The Indian authority at the meeting expressed commitment to start groundwork to start trade via these waterway routes as soon as the two governments ink agreement on the new and modified Transit Treaty,” he said, adding that the Indian authority has said Delhi will allow Nepal to use ships of maximum capacity as per feasibility in the finalised waterway routes.
Nepal and India are revising the transit treaty – that was revisited by two countries earlier in 1999 – in almost two decades. “Only small amendments were made to some clauses of the treaty over the time,” the press note from the ministry reads, adding that the treaty will be automatically renewed from January 5, 2020 till 2027.
Likewise, the meeting has also finalised two new routes for bulk cargo transportation. According to the existing provision, bulk cargo is allowed to enter only from Raxaul (Birgunj) but the two sides have agreed to allow bulk cargo movement to Nepal also from Jogbani (Biratnagar) and Nautanwa (Bhairahawa), the press note reads. “The technical teams of two countries also signed agreement to allow Nepal to use railway-based transportation of bulk cargo from Kolkata and Vishakhapatnam seaports of India to Jogbani and Nautanwa near Nepal-India border.”
Along with the provision, the Indian side has also agreed to allow Nepal to carry out transshipment service via the electronic cargo tracking system (ECTS) in transit routes other than Vishakhapatnam-Birgunj. At present, only Nepal-bound cargo released from Vishakhapatnam port are permitted to use ECTS under the transshipment facility. “The provision is in pilot implementation for cargo brought via Kolkata port,” the press note reads.
The multimodal facilities are expected to help reduce transit costs and make Nepali products more competitive in the international market. However, the provisions will come into effect once the revised treaty is signed at the higher level.
Dhakal also informed that the two sides also discussed on Nepal’s proposal to use two Indian seaports – Dhamra in Odisha and Mundra in Gujarat – for third-country trade. “But India will first carry out detailed feasibility before deciding whether to let allow use to use these ports to Nepal.”
Concluding the two-day Nepal-India Transit Treaty Review meeting in Kathmandu today, India agreed to allow operation of Nepali vessels on the Ganges River that runs parallel of Nepal’s southern border, according to a press note issued by the Ministry of Industry, Commerce and Supplies.
According to spokesperson of the ministry Navaraj Dhakal, the two countries signed the standard of procedures during the joint secretary level bilateral meeting. “Once the provision come into effect, Nepal can ferry any suitable size cargo vessels along the prescribed water routes,” he said, adding that Nepal has been seeking to use three inland waterways on Ganges River that include the Kolkata-Kalughat-Raxaul, Kolkata-Sahebgunj-Biratnagar, and Kolkata-Varanasi-Raxaul routes. “India has developed a waterway on the Ganges River, connecting Varanasi and the seaport of Haldiya, Kolkata.”
By utilising these water routes Nepal can expand its transit options to the sea to carry out the third country trade,” said Dhakal, who led the Nepali team, whereas joint secretary of the Department of Commerce at the Indian Ministry of Commerce and Industry Bhupinder Singh Bhalla led the Indian delegation in the bilateral meeting.
“The Indian authority at the meeting expressed commitment to start groundwork to start trade via these waterway routes as soon as the two governments ink agreement on the new and modified Transit Treaty,” he said, adding that the Indian authority has said Delhi will allow Nepal to use ships of maximum capacity as per feasibility in the finalised waterway routes.
Nepal and India are revising the transit treaty – that was revisited by two countries earlier in 1999 – in almost two decades. “Only small amendments were made to some clauses of the treaty over the time,” the press note from the ministry reads, adding that the treaty will be automatically renewed from January 5, 2020 till 2027.
Likewise, the meeting has also finalised two new routes for bulk cargo transportation. According to the existing provision, bulk cargo is allowed to enter only from Raxaul (Birgunj) but the two sides have agreed to allow bulk cargo movement to Nepal also from Jogbani (Biratnagar) and Nautanwa (Bhairahawa), the press note reads. “The technical teams of two countries also signed agreement to allow Nepal to use railway-based transportation of bulk cargo from Kolkata and Vishakhapatnam seaports of India to Jogbani and Nautanwa near Nepal-India border.”
Along with the provision, the Indian side has also agreed to allow Nepal to carry out transshipment service via the electronic cargo tracking system (ECTS) in transit routes other than Vishakhapatnam-Birgunj. At present, only Nepal-bound cargo released from Vishakhapatnam port are permitted to use ECTS under the transshipment facility. “The provision is in pilot implementation for cargo brought via Kolkata port,” the press note reads.
The multimodal facilities are expected to help reduce transit costs and make Nepali products more competitive in the international market. However, the provisions will come into effect once the revised treaty is signed at the higher level.
Dhakal also informed that the two sides also discussed on Nepal’s proposal to use two Indian seaports – Dhamra in Odisha and Mundra in Gujarat – for third-country trade. “But India will first carry out detailed feasibility before deciding whether to let allow use to use these ports to Nepal.”
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