Part of: GS Prelims and GS-II – International relations
In news Rail Transportation between India & Nepal got a major boost recently.
Both countries gave authorization to all cargo train operators to utilize the Indian railway network to carry all containers bound for Nepal.
Letter of Exchange (LoE) between officials of India & Nepal was also signed.
After this LoE, all kinds of cargoes in all categories of wagons that can carry freight on Indian Railways network within India can also carry freight to and from Nepal
Benefits of the LoE
This liberalization will allow market forces to come up in the rail freight segment in Nepal.
Likely to increase efficiency and cost- competitiveness, eventually benefiting the Nepalese consumers.
Move will reduce transportation costs for automobiles and certain other products whose carriage takes place in special wagons.
Another milestone in India’s efforts to enhance regional connectivity under the “Neighbourhood First” policy.
Do you know?
The Central government on 21 September 2016 approved merger of the Rail and General budgets from 2017, ending a 92-year-old practice of a separate budget for the Railways.
The decision to merge both the budgets was based on the recommendations of the committee chaired by Member of NITI Aayog, Bibek Debroy.
