In a first step towards materialising the Kathmandu-Raxaul Railway, Nepal and India on Friday exchanged a memorandum of understanding on preliminary survey of the cross-border connectivity project.

The development comes a week after Nepal and China agreed on the technical details of the ambitious Kathmandu-Kerung railway line. The MoU was signed on the sidelines of the Fourth BIMSTEC Summit that concluded in Kathmandu on Friday. As agreed, India will carry out preparatory survey of the railway line within one year.

Madhusudhan Adhikari, secretary at Ministry of Physical Infrastructure and Transport, and Manjeev Singh Puri, Indian Ambassador to Nepal, exchanged the MoU on behalf of their respective governments as Prime Minister KP Sharma Oli and Indian PM Narendra Modi witnessed the event.

India’s Konkan Railway Corporation Ltd has been tasked with conducting the engineering cum traffic survey of the railway project.

The broad gauge electrified rail line was announced during Prime Minister Oli’s visit to India in the first week of April. The neighbours were expected to sign the MoU during Indian Prime Minister’s Nepal visit in May this year, but it did not happen due to some differences. India forwarded a draft MoU as soon as Modi wrapped up his visit.

According to Secretary Adhikari, preparatory study of the proposed railway has already started. “This is just formalisation of the ongoing survey works,” he said.

Officials said the two countries will agree on implementation and funding modalities of the project based on the detailed project report. The Konkan Railway team had already discussed matters related to the survey with officials at the Railway Department. “We’ve held meetings with Konkan’s team including its Chairman Sanjay Gupta,” said a senior official at the department.

Subsequently, a technical team from India started initial study for the 100 kilometre line. The team identified Chobhar as the Kathmandu station of the proposed railway.

“The Raxaul-Kathmandu rail line is expected to expand connectivity by enhancing people-to-people linkages between the two countries and promoting economic growth and development,” the Indian Embassy said in a statement. The railway project is expected to be completed within five years.

Before signing the MoU, the two prime ministers held delegation-level talks. Also on Friday, Oli and Modi jointly inaugurated the 400-bed Nepal-Bharat Maitri Pashupati Dharmashala. The rest house was built with an Indian grant of Rs220 million.