After 6 years, India–China border trade via Lipulekh to restart in June; Nepal raises concerns

PITHORAGARH: India–China border trade through the Lipulekh Pass is set to resume this year in June after a six-year halt. The trade route was suspended in 2020 due to the Covid-19 pandemic.

The ministry of external affairs has notified the Pithoragarh district administration about the resumption, following which Pithoragarh district magistrate Ashish Kumar Bhatgai said he had convened a meeting with all departments concerned to begin preparations.

Border trade through Himalayan passes in the region has a long history but was closed after the 1962 India–China war. It was reopened in 1992 at Lipulekh and continued until 2019, before being halted again due to Covid-19. Local traders had consistently demanded reopening of the route, and with the Kailash Mansarovar yatra restarting last year via Lipulekh after a 5-yr hiatus due to the pandemic, trade is set to resume this year as well.

According to analysts, the move to restart trade through the route assumes significance since the issue of jurisdiction over the area had led to increasing tensions between India and Nepal in recent years. Nepal has maintained claims over the southern side of the Lipulekh pass, along with the Kalapani and Limpiyadhura areas, which have remained under Indian administration since the British era.

Tensions escalated after defence minister Rajnath Singh inaugurated a new road connecting Dharchula in Uttarakhand to Lipulekh Pass in May 2020. The 80-km route, originating from Ghatiabagarh, was said to significantly ease travel for Kailash–Mansarovar pilgrims by eliminating the need for a difficult high-altitude trek.

However, Nepal objected, claiming the road passed through its territory. Soon after, the neighbouring country released a new political map depicting Lipulekh, Limpiyadhura and Kalapani within its territory, which was unanimously approved by its parliament. And in Nov last year, under former PM KP Sharma Oli, Nepal's central bank unveiled new Rs 100 currency notes featuring the revised national map. Nepal has also been objecting to restarting trade through the route.

Early this month, however, in landmark elections necessitated by the Gen Z uprising last year, the party of rapper and ex-Kathmandu mayor Balendra Shah — Rastriya Swatantra Party's (RSP) —won a a clear majority, according to the final results from that country's general election held on 5 March.

Lipulekh Pass, situated at an elevation of 17,500 ft, serves as an important border crossing between India and Tibet. Located near the Tibetan town of Taklakot (Purang), it has historically been used by traders, pilgrims, and mendicants travelling between the two regions, including those undertaking the Kailash–Mansarovar pilgrimage.

Meanwhile, providing details on the modalities of the trading season, DM Bhatgai said the season will run from June to Sept, with a possible extension depending on weather conditions. He said that the number of traders and trade volume are expected to rise this year, as a motorable road to Lipulekh—completed in 2020—now replaces the earlier practice of transporting goods on mules and sheep. The improved road connectivity will reduce travel time and transportation costs, he added.

The DM said that officials have been asked to coordinate with SBI, Customs, police and BSNL to ensure necessary arrangements at the Indian trade market in Gunji. All essential infrastructure is to be completed before June, he said.

SDM (Dharchula) Ashish Joshi said trade passes will be issued following earlier procedures, and traders and helpers will have adequate time to apply.