China keen for road, rail corridor to India through Nepal

China has proposed constructing an ambitious economic corridor to India through Nepal, to link the three countries with road and rail connectivity as part of its new Silk Road initiative.

A senior Chinese official said on Wednesday the plan would be transformative for the region, and that an initial proposal was received "positively" by India and Nepal.

While India has in the past viewed rather warily China's rising economic influence in Nepal, the hope in Beijing is that a joint three-country corridor would send a signal that common economic interests would override a recent history of strategic mistrust.

"China floated the idea for India's and Nepal's consideration. Our impression is both countries are positive on this initiative and we are ready to set up study groups on feasibility for such a corridor," Huang Xilian, the Deputy Director General of the Foreign Ministry's Asia Department and "point man" on India, told Indian reporters.

"If we can reach an agreement on feasibility of such an economic corridor, we are willing to push forward this initiative and we believe it will bring benefits," he said.

The initiative was first proposed by President Xi Jinping when he met with Prime Minister Narendra Modi in Xi'an on May 14. The initiative was again discussed last week when External Affairs Minister Sushma Swaraj met her counterpart Wang Yi in Kathmandu on the sidelines of a meeting on Nepal's reconstruction following the earthquake.

While joint studies would first have to be conducted, Huang said the corridor could potentially involve road and rail connectivity, easier customs facilitation and free trade areas to boost engagement between the three countries, similar to the five other corridors China is pushing under its $100 billion Silk Road economic belt and Maritime Silk Road initiative.

China, Huang pointed out, has already extended its Tibet rail network to Shigatse, close to the Nepal border. "Technically, there is no problem for us to stretch the line to the border area," he said, adding that the Nepali side was keen for connectivity.

"At this moment we need to have some kind of feasibility study. Second, we need to have consultations with both Nepal and India. If India shows some kind of interest we will respond positively. From China to Nepal there are two routes, one through Zangmu and other through Gyirong. Gyirong is more feasible, through Himalayas to the Terai plain and on to the border with India".

India has in the past viewed the extension of China's railway line with some wariness for strategic reasons. But Huang said at least in principle, Prime Minister Modi had responded positively. "This will be a major initiative in promoting connectivity in this region, especially between our three countries and help our common neighbour Nepal. We were happy that it was also positively received by Prime Minister Modi," he said.

If the feasibility studies go forward with positive results, Chinese officials hope that the corridor will not only transform the Himalayan region economically, but also pave the way for closer joint collaboration between India and China in third party countries.