Letter of Exchange (LoE) Signed to Expand India–Nepal Transit Routes

A bilateral meeting between Shri Piyush Goyal, Commerce and Industry Minister of India and Mr. Anil Kumar Sinha, Minister for Industry, Commerce and Supplies, Government of Nepal was held today in New Delhi.

Both countries interchanged Letter of Exchange (LoE) amending the Protocol to the Treaty of Transit between India and Nepal, took place. This signing will facilitate the movement of rail-based freight between Jogbani (India) and Biratnagar (Nepal) including bulk cargo under an expanded definition. This liberalization extends to key transit corridors- Kolkata-Jogbani, Kolkata–Nautanwa (Sunauli), and Visakhapatnam–Nautanwa (Sunauli), thereby strengthening multimodal trade connectivity between the two countries and Nepal’s trade with third countries.

The aforementioned Letter of Exchange (LoE) enables direct rail connectivity along the Jogbani–Biratnagar rail link for both containerized and bulk cargo, facilitating transport from the ports of Kolkata and Visakhapatnam to the Nepal Customs Yard cargo station located in Morang District, near Biratnagar in Nepal. This rail link, constructed with grant assistance from the Government of India, was jointly inaugurated by the Prime Ministers of India and Nepal on 1 June 2023.

The meeting also welcomed ongoing bilateral initiatives to enhance cross-border connectivity and trade facilitation, including the development of Integrated Check Posts and other infrastructure. India remains Nepal’s largest trade and investment partner, accounting for a significant share of its external trade. These new measures are expected to further consolidate economic and commercial linkages between the two countries and beyond.

Transit agreement amendment expands rail freight connectivity enabling direct container and bulk movement between India ports and Nepal land customs. Amendment to the Protocol to the Treaty of Transit via a Letter of Exchange broadens rail transit by permitting both containerized and bulk cargo on the Jogbani-Biratnagar rail link, and extends liberalised access along corridors including Kolkata-Jogbani, Kolkata-Nautanwa and Visakhapatnam-Nautanwa, enabling direct rail movement from Indian ports to the Nepal Customs Yard in Morang District.