India has agreed to build strategic railway link between Raxaul in Bihar and Kathmandu in Nepal to facilitate people-to-people (P2P) contact and bulk movement of goods.
The new electrified rail line will be financed by India.
There are three other railway projects in pipeline between the two countries viz. Nautanwa- Bhairahawa, New Jalpaiguri-Kakarbhitta and Nepalgunj Road-Nepalgunj.
The proposed railway line comes nearly two years after China in March 2016, agreed to construct strategic railway link with Nepal through Tibet.
China aims to reduce landlocked Nepal’s dependence on India for transit connectivity.
China and Nepal have recently also signed a transit treaty which also comes years after sense of mistrust that had prevailed.