As a first step, a detailed traffic survey on a line that proposes to link Kathmandu in Nepal with Raxaul in India, was submitted to the government of Nepal last month. Conducted by Pipavav Railway Corporation (PRCL), the project envisages the following:

• Link Kadhmandu Birgunj railway line to Indian border at Raxaul in Bihar

• Length of the line: 174 km (against 284 km by road)

• Axle load: 22.5 tonnes

• Gauge: broad gauge

• Tunnels: 58, with the longest one being 2,733.87 metres

• Stations: 13

• Traction: electric

• Cost: Rs 2,965 crore

Based on BOOT (build, own, operate, transfer) model, the internal rate of return for the project has been worked out to around 10 per cent. This is based on the assumption of 72 per cent of road revenues.

The line, says the survey, could help expand trade and development and thereby provide a boost to the two economies. In addition, the link could “well connect Nepalese railway system with Indian, Pakistani and Bangladeshi railway networks and may provide intra-regional connectivity.”

While the project focuses on freight earnings and boosting economic ties, a whole new group of tourists will be able to utilise the network as well, says R C Dubey, managing director, PRCL.

Besides, the project goes beyond trade and tourism and has strategic implications. “This line will help speed imports and exports to and from Nepal through Indian ports,” says Dubey. “Otherwise, Nepal also has the option of transporting it through Chinese ports.”

State owned Container Corporation of India (Concor) already operates a container terminal in Nepal’s Birgunj, through Raxaul. The new line, effectively, will be built from Kathmandu to Birgunj and through it will link the Nepalese capital to the Indian rail network. And looked at through the window of the ambitious TARC, the Kathmandu-Birgunj line should help Nepal link up with Myanmar and Thailand.