KATHMANDU - China Railway Construction Corporation Limited (CRCC) has applied for conducting a feasibility study of proposed Kathmandu-Rasuwagadhi railway which is expected to connect the Chinese railway network in the near future, Nepal's Department of Railway said on Monday.

Ananta Acharya, director general of Department of Railway told Xinhua that the CRCC submitted an application about two weeks ago showing willingness to conduct feasibility study of Kathmandu-Rasuwagadhi section of proposed railway.

Nepal's new budget for next fiscal year 2016-17 has announced conducting a detailed feasibility study of proposed Rasuwgadhi-Kathmandu-Pokhara-Lumbini railway line within the next two years as a part of enhancing connectivity with China.

The proposed Kathmandu-Rasuwgadhi railway network has been planned to be extended to Lumbini, the birth place of Lord Buddha, in southern Nepal through the Himalayan country's tourism city Pokhara in western Nepal.

The Chinese company's application came after Nepalese side requested China's support for conducting feasibility study and preparing detailed project report of both sections -- Kathmandu-Rasuwagadhi and Kathmandu-Pokhara-Lumbini of the proposed railway when Prime Minister K.P. Sharma Oli's visited China in March.

Nepal aims to connect with Chinese railway so that the Himalayan country could also use Chinese railway not only for the bilateral trade but also as a transit center for the third country trade.