India and Bhutan to Connect by Rail with Rs 4,033 Cr Project

• Two new railway lines, Kokrajhar-Gelephu and Banarhat-Samtse, to connect India and Bhutan
• The 16-km Banarhat-Samtse stretch will provide Bhutan its first railway connectivity
• The 90-km project will cost Rs 4,033 crore, fully funded by the Indian government

In a significant move aimed at strengthening ties between India and Bhutan, Union Minister Ashwini Vaishnaw and Foreign Secretary Vikram Misri shared plans to connect Bhutan to India through railway links to Gelephu and Samtse, involving a total investment of ₹4,033 crore.

Union Railway Minister Ashwini Vaishnaw stated, "The India-Bhutan Railway Project aims to connect two important cities in Bhutan. As shared by the Foreign Secretary, one is Gelephu, being developed as a mindfulness city, and the other is Samtse, an industrial city. Both projects will be linked to the Indian Railways network at Kokrajar and Banarhat".

The India Bhutan rail link is set to be established through a Rs 4,033 crore rail project, enhancing India Bhutan connectivity and creating the first cross-border rail India Bhutan corridor. This initiative is expected to boost regional trade and tourism rail, strengthening economic and cultural ties between the two countries.

He added, "The Kokrajar–Gelephu line connects to Bongaigaon, a major industrial hub in India. Kokrajar serves as the regional station, linking the project to the entire Indian railway network. In essence, by constructing approximately 70 km of new track, Bhutan gains access to 150,000 km of India’s railway network. This demonstrates the significant advantage of the network effect".

The project will encompass around 90 km, creating 89 km of new railway network. The minster noted, "India is the largest trading partner of Bhutan and most of the exempt trade of Bhutan is done through Indian ports. Therefore, it becomes very important to have a good seamless rail connectivity for the Bhutanese economy to grow and for the people to have better access to the global network. That's why this entire project has been undertaken..." .

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During Prime Minister Narendra Modi's visit to Bhutan in March 2024, both countries agreed to create two rail links - the Kokrajhar-Gelephu link and the Banarhat-Samtse link, the latter of which will track 16 km to connect West Bengal to Bhutan.

Foreign Secretary Vikram Misri said, "As you are all aware, India and Bhutan share a relationship of exceptional trust, mutual respect and understanding. This is a relationship that is rooted in cultural and civilizational ties, extensive people-to-people relations, and our shared developmental and security interests. These ties are reflected in very close contact at the highest levels".

"The Government of India has been Bhutan's largest provider of developmental assistance and has played a vital role in its modernisation, especially in the areas of infrastructure and the overall economic development of the country", he added.

Mishri stated, "For the 13th Five-Year Plan of Bhutan, which runs from 2024 to 2029, the Government of India has committed support of Rs 10,000 crores, which covers project-wide assistance, high-impact community development projects, the economic stimulus program and a program grant. And this quantum constitutes a 100 per cent increase over the 12th five-year plan figures".

The railway lines will also provide Bhutan with its first railway connectivity, with total funding for the project coming from the Indian government.