India to Build Rs 40 Billion Rail Links With Bhutan

03 Oct 2025 CW Team

India on Monday announced plans to construct two cross-border railway links with Bhutan at a cost of about Rs 40.3 billion, marking the first such projects to strengthen trade and economic ties with the Himalayan nation.

Railway Minister Ashwini Vaishnaw and Foreign Secretary Vikram Misri revealed details of the projects linking Gelephu and Samtse in Bhutan with Kokrajhar in Assam and Banarhat in West Bengal. Together, the projects will involve laying 89 km of new tracks, with completion targeted within the next four years.

Misri emphasised the “exceptional trust, mutual respect, and understanding” underpinning India-Bhutan relations, which are rooted in cultural ties, people-to-people links, and shared development and security interests.

The Rs 34.6 billion Kokrajhar–Gelephu line will span 69 km with six stations and include two key bridges, two viaducts, 29 major bridges, 65 minor bridges, two goodsheds, one road-over-bridge and 39 road-under-bridges. Of this stretch, 2.39 km will lie within Bhutan. It is expected to take four years to complete.

The second line, from Banarhat to Samtse, will be 20 km long with two stations. Scheduled for completion in three years, it carries an estimated cost of Rs 5.8 billion.

Vaishnaw said the projects will provide seamless connectivity for Bhutan’s economy, which relies heavily on Indian ports for trade. “Samtse and Gelephu are significant for Bhutan’s economic growth strategy, making these projects vital,” he added.

India is Bhutan’s largest development partner, with commitments of Rs 100 billion under Bhutan’s 13th five-year plan (2024–2029), double the support provided in the previous plan.

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