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Agreements between India & Nepal in Infrastructure & Energy Sector

On Thursday, the first land port in Uttar Pradesh at the India-Nepal border was essentially opened by Prime Minister Narendra Modi and his Nepalese counterpart, Pushpakamal Dahal Prachanda. The Rupaidiha Land Port, which is situated on 115 acres of land, cost roughly USD24.3 million to build.

According to the management of Land Port Authority of India, Nepal Intermodal Transport Development Board would oversee the port on the Indian side while Land Ports Authority of India would operate it in Nepal. The port contains a sewage treatment facility, an underground water tank, passenger and freight terminals, quarantine buildings, warehouses, restrooms, and canteens. The port would be connected to NH-927, which runs from Barabanki to the Rupaidiha border, by a 2.2-km feeder highway. At the same time, the Bhumi Pujan for the land port that would be constructed on the Sonauli boundary of the Maharajganj district was held. Officers from both nations were in attendance. The land port will be watched over by Sashastra Seema Bal employees, and CCTV cameras have been placed all around it.

Bringing immigration, customs, and other services from the two nations under one roof at these centers on both sides of the border facilitates the transit of cargo trucks across the border.

The Nepalese government anticipates that there will be numerous investment opportunities in the hydro power industry as well. A long-term power trade agreement has been concluded, making electricity trading between India and Nepal more predictable and attracting greater investment into Nepal's hydropower industry.

Both nations agreed to a number of significant agreements, one of which called for New Delhi to purchase 10,000 megawatts of power from the neighboring nation during the following ten years. The Indian government approved the first trilateral power trade for up to 40 megawatts of power from Nepal to Bangladesh via India, fostering deeper regional cooperation. An oil pipeline from Amlekhganj to Lothar in Chitwan, a 400 KV double circuit transmission line between Gorakhpur and New Butwal, and the Sunauli Bhairahawa Integrated check post’s foundation were also laid.

The two countries bilateral trade was USD8.9 billion in 2022–2023 compared to USD11 billion in 2021–2022 dollars. Additionally, agreements on digital payments were inked by both countries.

According to TechSci Research report on India Ports Infrastructure Market By Type (Major Ports and Minor Ports), By Commodity (Liquid, Bulk, Containerized and Others), By Construction Type (Terminal, Equipment and Others), By Application (Passenger and Cargo), By Region, Competition Forecast & Opportunities, 2028” India Ports Infrastructure Market is expected to grow at a formidable rate during the forecast period owing to importing or exporting commodities for which many sectors rely on maritime shipping, therefore, driving the market of India's port infrastructure. Furthermore, shipping products by air is more expensive than shipping them by water. During the projected period, this is also anticipated to help the India port infrastructure market grow.

Relevant Reports

India Ports Infrastructure Market By Type (Major Ports and Minor Ports), By Commodity (Liquid, Bulk, Containerized and Others), By Construction Type (Terminal, Equipment and Others), By Application (Passenger and Cargo), By Region, Competition Forecast & Opportunities

Infrastructure | Jul, 2024

Rising investments by private players and relaxation of government policies pertaining to port development to drive the India Ports infrastructure market in the forecast period of 2025-2030.

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