New Delhi, July 26: The Union cabinet today cleared a freight train service between Birgunj in Nepal and Raxaul in Bihar, giving the land-locked country a rail link to the ports at Calcutta and Haldia.

India and Nepal had signed a rail services’ agreement on May 21.

At present, freight to and from Nepal moves by road from different Indian ports. The rail link will reduce transit time, provide better customer services and also prevent the rampant smuggling in the eastern region by diverting Nepal-bound goods to the Indian market.

The rail link between Raxaul and Sirsiya was conceived in the context of the rail-cum-road inland container depot at Birgunj, said an official spokesperson.

It is proposed to improve services by moving freight on the railway system from the Calcutta and Haldia ports to the new terminal at Birgunj, which is linked to Raxaul station of East-Central Railway. In addition, bilateral traffic also originating from loading stations of Indian railways will be destined for Birgunj, the spokesperson said.

Other decisions taken by the cabinet include approving the Rs 177.85 crore astronomy satellite (Astrosat) project. The project, with a foreign exchange component of Rs 106.59 crore, is an approved programme under the tenth plan.

The Astrosat, to be developed and launched by the Indian Space Research Organisation by 2007, envisages design, development, fabrication and launch of a multi-wavelength astronomical observatory satellite.

Astrosat will be a national observatory in space that will be available for astronomical observations to any researcher in India. Though most of the observing time will be for Indian researchers, a part of it will also be made available to the international astronomical community on a selective basis.