Nepal has signed an MoU with India to prepare a detailed project report for the proposed $3.15 billion RAILWAY line linking Kathmandu with the Indian border town of Raxaul, a statement said on Friday.
This proposed rail line is seen as counter to China’s bid to expand the railway upto Kathmandu.
The broad-gauge line will give the Nepali capital a direct connection with the Indian railway Network, enabling non-stop train travel to all Indian cities.
The train link to Raxaul, which will be 136 to 198 km long, is seen as New Delhi’s attempt to counter Chinese influence in Nepal. According to the understanding, India will finish the detailed project report within 18 months of the commencement of the agreement, and Nepal will facilitate the process. The Indian government will bear the cost of preparing it.
The Indian side has proposed to build four lines to connect Raxaul with Kathmandu. The construction is expected to take five years after clearance of the land from the Nepal side.