By TIOL News Service

NEW DELHI, NOV 20, 2014: THE Union Cabinet today ratified the SAARC Regional Railways Agreement by India, as a member State of SAARC.

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 was necessary. A study viz. the SAARC Regional Multi Modal Transport Study (SRMTS) of 2005 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. Accordingly, the Regional Rail Agreement (RRA) was drafted by India for SAARC countries in 2008. Since then, the draft Agreement has been discussed in the three meetings of the Expert Group on Regional Rail Agreement and in the meetings of Inter-Governmental Group on Transport (IGGT) and the text of the Agreement proposed now for signature was finalized in the 5th IGGT held in New Delhi on 30th September, 2014.

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 Regional Rail 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.

SAARC Motor Vehicle Agreement for the Regulation of Passenger and Cargo Vehicular Traffic amongst SAARC Member States

The Cabinet also approved the Signing and ratifying the SAARC Motor Vehicles Agreement at the SAARC summit on November 26-27, 2014 in Kathmandu. Further, the Cabinet approved the signing of a Bilateral Agreement for the regulation of passenger traffic between Government of India and Republic of Nepal on the sidelines of the forthcoming SAARC Summit in Kathmandu. The Cabinet has also authorized the Ministry of Road Transport & Highways to sign similar Bilateral Agreements and Protocols with other SAARC member States.

The SAARC Transport Ministers, at their second meeting in Colombo (25 July 2009), approved the recommendations of Inter Governmental Group on Transport (IGGT) to set up an Expert Group to negotiate and finalize the text of the draft Regional Agreement on Motor Vehicles for SAARC Member States. The Expert Group on the SAARC Motor Vehicles Agreement, in its third meeting held at Neemrana (Rajasthan) on 7-8 September 2014, considered and finalized the draft text of the agreement which was endorsed in the Fifth meeting of the SAARC IGGT held on 30th September 2014 at New Delhi attended by delegations from all Member States except Maldives. 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 is proposed to be signed at SAARC summit on November 26-27th, 2014 in Kathmandu. The Agreement will go a long way in strengthening the ties and promoting multilaterism among SAARC Member States.

Signing of "SAARC Framework Agreement for Energy Cooperation (Electricity)" among the SAARC Member countries in the forthcoming 18th SAARC Summit

The Union Cabinet today gave its approval for signing of "SAARC Framework Agreement for Energy Cooperation (Electricity)" among the SAARC Member States during the forthcoming 18th SAARC Summit scheduled to be held at Kathmandu, Nepal on 26-27 November, 2014.

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.