Cabinet clears Saarc motor vehicles agreement

In a boost to regional connectivity, the union cabinet Thursday approved the signing of the Saarc motor vehicles agreement and a bilateral deal between India and Nepal for regulation of passenger traffic.

At a meeting chaired by Prime Minister Narendra Modi, the cabinet also authorised the road transport and highways ministry to sign similar bilateral agreements like the one with Nepal with other South Asian Association for Regional Cooperation (Saarc) member states, an official release said here.

The Saarc Motor Vehicles agreement would be signed during the Saarc summit Nov 26-27 in Kathmandu, which Modi would attend.

The Saarc transport ministers, at their second meeting in Colombo in 2009, approved the recommendations of the Inter-Governmental Group on Transport (IGGT) to set up an expert group to negotiate and finalise the text of the draft regional agreement on motor vehicles for Saarc member states.

The agreement provides for member states to allow vehicles of other member states to ply in their territory for transportation of cargo and passengers and obtaining permits for such transport from the member states as per procedure and protocols prescribed.

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 release said.