(MENAFN- KNN India) New Delhi, Nov 14 (KNN) India and Nepal have signed a Letter of Exchange (LoE) to amend the Protocol to the Treaty of Transit, enabling expanded rail-based freight movement between the two countries.

The LoE was exchanged during a bilateral meeting between India's Commerce and Industry Minister Piyush Goyal and Nepal's Minister for Industry, Commerce and Supplies Anil Kumar Sinha held in New Delhi on Wednesday.

“This will facilitate the movement of rail-based freight and strengthen multimodal trade connectivity between both countries, further consolidating our economic and commercial linkages.” Goyal tweeted.

According to the Commerce Ministry, the amendment will facilitate the movement of rail freight, including bulk cargo, between Jogbani in India and Biratnagar in Nepal under an expanded definition of rail-based transit.

The liberalised provisions will also apply to key transit corridors such as Kolkata–Jogbani, Kolkata–Nautanwa (Sunauli) and Visakhapatnam–Nautanwa (Sunauli), enhancing multimodal trade routes for Nepal and improving its access to third-country markets.

The updated LoE enables the Jogbani–Biratnagar rail link to handle containerised and bulk cargo from the Kolkata and Visakhapatnam ports to Nepal's Morang customs yard. The 18.6-km line, funded by India, was inaugurated by both prime ministers in June 2023.

Both ministers also reviewed progress on infrastructure initiatives aimed at improving cross-border linkages, including Integrated Check Posts (ICPs) and other trade-facilitation projects.

India remains Nepal's largest trade and investment partner, accounting for a major share of its external trade. The updated protocol reinforces India–Nepal cooperation on regional supply chains and cross-border trade facilitation.

(KNN Bureau)

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