India Invests Rs 4,000 Crore in First-Ever Cross-Border Rail Links with Bhutan to Boost Economic Ties

India revealed plans on Monday to construct two cross-border railway connections with Bhutan, investing over Rs 4,000 crore in these landmark infrastructure projects.

These rail links, the first of their kind between India and the Himalayan nation, will connect the Bhutanese cities of Gelephu and Samtse with Kokrajhar in Assam and Banarhat in West Bengal respectively.

Railway Minister Ashwini Vaishnaw and Foreign Secretary Vikram Misri jointly announced the details of these projects, which will encompass 89 kilometers of railway tracks with completion expected within four years.

"India and Bhutan share a relationship of exceptional trust, mutual respect, and understanding," stated Misri during the joint press briefing.

"This relationship is rooted in cultural and civilizational ties, extensive people-to-people relations, and our shared developmental and security interests," he added.

India's announcement comes amid China's increasing efforts to expand its strategic influence in Bhutan.

Misri confirmed that both governments have agreed to establish rail links between Banarhat and Samtse as well as between Kokrajhar and Gelephu, marking the first railway connectivity projects with Bhutan.

The agreement for these rail connections was formalized during Prime Minister Narendra Modi's visit to Bhutan last year.

Minister Vaishnaw explained that the projects will extend from the Indian Railways network at Kokrajhar and Banarhat with a planned investment of approximately Rs 4,033 crore.

"As most of Bhutan's EXIM trade passes through Indian ports, seamless rail connectivity becomes vital for Bhutan's economic growth and providing its people better access to global networks," the minister explained.

"That's why this entire project has been undertaken. Samtse and Gelephu hold significant importance in Bhutan's economic development plans," he noted.

The first rail link between Kokrajhar and Gelephu will span 69 kilometers with six stations. This construction will include two important bridges, two viaducts, 29 major bridges, 65 minor bridges, two goods sheds, one road-over-bridge (ROB) and 39 road-under-bridges (RUBs).

This connection will be completed in four years with an investment of Rs 3,456 crore, with 2.39 kilometers of the total 69 kilometers being on Bhutanese territory.

The second line connecting Banarhat to Samtse will cover 20 kilometers with two intermediate stations. This project has a three-year completion timeline and will cost Rs 577 crore.

Foreign Secretary Misri emphasized that India has been Bhutan's largest developmental assistance provider, playing a crucial role in its modernization, particularly in infrastructure and overall economic development.

"For Bhutan's 13th five-year plan, spanning 2024 to 2029, the Indian government has committed Rs 10,000 crore in support, covering project-tied assistance, high-impact community development projects, economic stimulus programs, and program grants," he said.

"This amount represents a 100 percent increase compared to the 12th five-year plan figures," Misri concluded.