India halts Rs 50 billion rail projects in Bangladesh over security fears

24 Apr 2025 CW Team

India has suspended nearly Rs 50 billion worth of railway projects in Bangladesh, citing political instability and safety concerns for on-ground workers, according to a Hindu BusinessLine report.

The halted projects—meant to improve connectivity between India’s mainland and the Northeast via Bangladesh—include the Akhaura–Agartala cross-border rail link, the Khulna–Mongla port line, and the Dhaka–Tongi–Joydebpur expansion. Survey work on five other proposed links has also been paused.

With tensions escalating in Bangladesh, Indian authorities are now shifting focus to alternate transit routes through Nepal and Bhutan, while also ramping up internal connectivity via the Siliguri Corridor, a narrow but vital stretch linking the Northeast to the rest of the country.

Railway officials said work is being fast-tracked to double or quadruple lines in Uttar Pradesh and Bihar—states feeding into the Siliguri Corridor. Survey work for these capacity upgrades is already in progress.

India is also revisiting strategic rail agreements with Nepal and exploring potential corridors through Bhutan, which shares close proximity with the Northeast. While these routes pose fresh logistical challenges, they are seen as more stable alternatives to the Bangladesh route in the current geopolitical context.

Image source:reuters

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