The Cabinet chaired by Prime Minister Narendra Modi has approved signing and ratifying SAARC pacts on Railway, Motor Vehicles and Energy during the forthcoming 18th SAARC summit scheduled to be held at Kathmandu, Nepal on 26-27 November. The cabinet yesterday approved signing and ratifying the SAARC Regional Railways Agreement by India, as a member State of SAARC. The SAARC Regional Railways Agreement will strengthen transport connectivity in the SAARC Region. Strengthened rail and transport connectivity will not only provide stimulus to the economic development in the region as a whole but also promote social and cultural contact and encourage tourism amongst the Member States. The Agreement will also enable low cost, energy efficient and environmentally sustainable transportation in the SAARC region and provide trade and economic links for the land locked countries and semi isolated regions.
The SAARC region is considered one of the least networked regions in terms of physical and soft connectivity leading to high costs and low volumes of trade recognizing which the leaders of the SAARC countries agreed that better transport infrastructure and linkages among the SAARC countries were necessary. A study undertaken by SAARC Secretariat had recommended multilateral agreements permitting free movement of people, goods and services within SAARC region in the Road and Rail sector and this was endorsed by the SAARC countries in the Summit level and Transport Ministers meetings. The Cabinet also approved the signing and ratifying the SAARC Motor Vehicles Agreement at the SAARC summit. Further, the Cabinet approved the signing of a Bilateral Agreement for the regulation of passenger traffic between India and Nepal on the sidelines of the forthcoming SAARC Summit.
The Cabinet has also authorized the Ministry of Road Transport & Highways to sign similar Bilateral Agreements and Protocols with other SAARC member States. This Agreement provides for the Member States allowing the vehicles of other Member States to ply in their territory for transportation of Cargo and Passengers subject to various terms and conditions in the Agreement and obtaining permits for such transport from the Member States as per procedure and protocols prescribed in the Agreement. The agreement once signed will result in closer regional economic cooperation and integration through enhanced regional connectivity by allowing movement of goods and passengers in the region through road transport.
The Agreement will go a long way in strengthening the ties and promoting multilaterism among SAARC Member States. The Cabinet also gave its approval for signing of “SAARC Framework Agreement for Energy Cooperation (Electricity)” among the SAARC Member States during the Summit. The Agreement will enable greater cooperation in the power sector among SAARC countries. The Agreement is expected to improve the power availability in the entire SAARC region. It would facilitate integrated operation of the regional power grid.
