Nathu La opens for trade on September 30

The decision to open the pass to border trade comes two years after the then Prime Minister Atal Behari Vajpayee signed an agreement to this effect during his June 2003 visit to China.

Ministry officials said the change at the Centre, lack of infrastructure at the border outpost to deal with the inflow and outflow of goods and security issues were responsible for the delay in opening the route even though the route was cleared from the security point of view earlier this year.

The 150-km road on the Nathu La-Gangtok-Siliguri route had to be upgraded and strengthened, and passport, immigration and customs, and excise controls still needed to be established before the route is opened. A warehouse facility was also needed around Changgu to facilitate border trade.

Right now, border trade is limited to 35 items produced or consumed locally and no high value items are included. Goods from China will now be allowed to come up to Sherathang where they will be downloaded at the mart; goods from India will be transported up to Requinggang.

West Bengal, Bihar and the Northeastern states will be able to send textiles, cereals, food items and other small value goods across the border. Senior ministry officials said China is keen to increase the ambit to transit trade in the near future — the idea has gone down well with eastern states, particularly West Bengal.

Industry bodies have also been lobbying hard for transit trade and have argued that this would boost the economies of eastern and Northeastern states. They say iron ore, linoleum products, minerals, ore and pharmaceuticals could be traded through this route.