Rs 4k Cr for Indian Rail to Bhutan
The portions within Bhutan will also be financed by India through grant assistance provided by the ministry of external affairs

New Delhi: India on Monday announced two major railway projects connecting it to its strategically-close neighbour Bhutan, with a total investment of over Rs 4,000 crore and a total distance of 89 km. The projects — fully funded by India — are expected to significantly boost Bhutan’s economy by enhancing its export potential and integrating it more closely with India’s vast railway cargo network.
Union railway minister Ashwini Vaishnaw said the two projects would link Kokrajhar in Assam with Gelephu in Bhutan, and Banarhat in West Bengal with Samtse in Bhutan. Mr Vaishnaw said the rail corridors would include construction of major and minor bridges, flyovers, and underpasses and would be fully electrified. “These projects will bring tremendous economic benefits to the people,” Mr Vaishnaw said, adding that modern trains would be used and all environmental considerations had been addressed.
While the larger share of the railway lines will fall within Indian territory and be funded by the ministry of railways, the portions within Bhutan will also be financed by India through grant assistance provided by the ministry of external affairs (MEA). The agreement for setting up of the rail links was signed during Prime Minister Narendra Modi's visit to Bhutan last year.
The investment envisaged at this point is about Rs 4,033 crore, Mr Vaishnaw said.
Providing details of the first 69-km-long line between Kokrajhar and Gelephu, Mr Vaishnaw said that there will be six stations between the two cities and the construction of the complete line will involve two important bridges, two viaducts, 29 major bridges, 65 minor bridges, two goodsheds, one road-over-bridge (ROB) and 39 road-under-bridges (RUBs). It will be completed in four years with an investment of Rs 3,456 crore and 2.39 km out of 69 km will be on Bhutanese side.
Mr Vaishnaw informed the media that the second line between Banarhat to Samtse will be 20 km long with two stations in between. It will have a completion period of three years at Rs 577 crore cost.
He also said that out of 20 km, 2.13 km will be in Bhutanese side, and there will be one major bridge, 24 minor bridges, one ROB and 37 RUBs on the route.
Speaking at a joint press conference alongside Mr Vaishnaw, foreign secretary Vikram Misri said that the two projects would connect Bhutanese goods to the vast Indian railway cargo movement. The projects are being seen as vital Indian development assistance project to Bhutan at a time when China has been making all efforts to improve its own ties with Bhutan. India is the largest provider of development assistance to Bhutan.
He noted that Bhutan is developing a new economic hub in Gelephu, bordering Assam, aimed at connecting Bhutan to both South Asia and Southeast Asia. The railway link to Gelephu will support this vision, while the Banarhat-Samtse line will aid the development of Samtse as an industrial township.
Pointing out that the projects will economically benefit both nations, the foreign secretary said that “there will be an economic spin-off effect in the entire region”.
Mr Misri told reporters that bilateral ties between India and Bhutan are marked by “exceptional trust and mutual respect” and have “shared development and security interests”. India therefore plays a vital role in the modernisation projects in Bhutan.
India has already committed to a massive Rs 10,000 crore for Bhutan’s 13th five year plan from 2024 to 2029 —a 100% increase from the previous plan — covering high-impact community and infrastructure projects, thereby highlighting India’s commitment for the progress of Bhutan.
The foreign secretary also mentioned the joint development of five hydropower projects, road connectivity, digital connectivity, and establishment of integrated check points. Mr Misri also referred to forthcoming discussions between the two nations regarding renewal of a nearly decade-old bilateral treaty on commerce. He said that Bangladesh and Nepal can also benefit from the two India-Bhutan railway projects in terms of transportation of imports and exports of those two countries to Bhutan.

