Sunday, April 2 2006 11:07 Hrs (IST) - World Time -

Kathmandu: The Indo-Nepal Transit Treaty has been renewed for the next seven years, resolving the uncertainty about international trade of the landlocked Himalayan Kingdom, officials said yesterday (Apr 1, 2006).

Though the framework of the Treaty has not been altered much, some changes have been made in its operational modality, that was set to expire on April 5. Earlier, the treaty had expired on January 5 but was kept effective through a three-month extension.

The Nepal India Transit Treaty has been renewed till January 5, 2013, Nepalese Commerce Minister Buddhiman Tamang told reporters.

The text of the treaty remains intact with the number of transit points for the movement of third country trade kept at 15.

Certain new understandings have been reached, on a few operational matters in order to address each other's concerns, the Minister said.

The renewal of the Transit Treaty was effected through an exchange of letters between the commerce ministries of the two countries, in which Nepali Commerce Secretary Bharat Bahadur Thapa and Indian Commerce Secretary S.N. Menon had signed.

The new treaty allows Nepal to use only seven transit points for the movement of goods that India deems sensitive.

Kakarbhitta, Biratnagar, Birgunj, Nepalgun, Bhairahawa, Mahendranagar, Birgunj ICD-Kolkota and Birgunj ICD Haldiya are the routes fixed for movement of sensitive items.