The government has begun feasibility studies on a transit route that India wants through Nepal to Tibet. In response to Indian requests, several routes are being considered. "One of the most feasible so far is the Kerung-Rasuwa border that includes the Trisuli road," says Commerce Secretary Dinesh Chandra Pyakurel. "But we have also been studying the Jogbani-Kimathanka road." The Arniko Highway already links Tibet's Khasa with Kathmandu but officials say it is too narrow and would not allow the volume of traffic the Indian government wants. "That is why we need to think about building a new highway," says Pyakurel.

India has said it is keen to have a Nepal transit route to Tibet in order to boost its trade with China. Indo-China bilateral trade between January and September this year stood at $9.78 billion, up by 85 percent over the corresponding period last year. Since Nepal too has trade interest with Tibet, government officials say they are working on modalities that do not hamper the Nepal-China trade while allowing India the transit route. "We will make sure that our prime export products do not suffer." Government officials say Nepal would benefit from its inland container depots by allowing transit for Indian and Chinese goods.

The Nepal-India transit treaty allows the two countries reciprocity in transit. An official said once transit to Tibet is allowed to India, Nepal may seek similar facilities to Pakistan via India.