According to a statement issued by Nepal's Ministry of Foreign Affairs, Jamcan informed Yadav at a meeting in the Tibetan capital Lhasa on April 1 that the line will be extended 540km from Xigaze, Tibet's second city, to Kerung, 35km from the Nepalese frontier, by 2020.

During bilateral talks in Kathmandu last December, China's foreign minister Mr Wang Li called on his Nepalese counterpart Mr Mahendra Bahadur Pandey to commission a feasibility study for the extension of the line to Kathmandu and beyond.

The 253km second phase of the Tibet Railway from Lhasa to Xigaze was inaugurated in August 2014.