India approves Saarc deals on power, railway

The Indian government yesterday cleared the signing of a Saarc framework agreement for cooperation in the electricity sector which is expected to help meet shortages in deficit-countries like Bangladesh.
 The agreement is expected to be signed at the forthcoming Saarc Summit to be held in Kathmandu on 26-27 November.
"The agreement will enable greater cooperation in the power sector among Saarc countries and is expected to improve the power availability in the entire Saarc region. It would facilitate integrated operation of the regional power grid," an official statement here said.
The electricity agreement is aimed at creating a regional energy market for enhancing cross-border electricity trade among South Asian countries.
It will establish a regional power exchange to maximise the potential for power transfers among the Saarc nations and reduce power shortages and exploit relevant economic benefits.
The Indian government also approved a motor vehicle agreement under which Saarc member-countries will allow each other's vehicles to ply in their territory for transportation of cargo and passengers.
The agreement is expected to lead to closer regional economic cooperation and integration through enhanced regional connectivity by allowing movement of goods and passengers in the region through road transport, the statement said.
The government also approved signing and ratifying the Saarc Regional Railways Agreement.
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. To bridge this gap, the leaders of Saarc countries agreed that better transport infrastructure and linkages among them were necessary.
A study titled Saarc Regional Multi Modal Transport Study (SRMTS) of 2005, undertaken by the Saarc Secretariat, had recommended multilateral agreements permitting free movement of people, goods and services in the Saarc region in the road and rail sectors. 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).
Strengthened rail and transport connectivity will not only provide stimulus to the economic development in the region as a whole but also will promote social and cultural contact and encourage tourism amongst the member countries.
The Regional Rail Agreement will also enable low-cost, energy-efficient and environmentally sustainable transportation in the Saarc region s well as providing trade and economic links for land-locked countries and semi-isolated regions.