India to build two railway links to Bhutan at ₹4,033 crore to boost regional connectivity

India has announced plans to construct two new railway lines linking Bhutan, marking a major step in strengthening regional connectivity and economic integration. The projects, worth about ₹4,033 crore, will connect Banarhat in West Bengal to Samtse and Kokrajhar in Assam to Gelephu.

Foreign Secretary Vikram Misri said the projects are aligned with Bhutan’s long-term development vision. “The Gelephu Mindfulness City project, guided by the King of Bhutan, is designed as an economic hub connecting Bhutan with South Asia and Southeast Asia. Similarly, Samtse is emerging as a key industrial town for manufacturing and exports. These railway links will be vital to support both initiatives by enhancing cargo and passenger movement,” he said.

Union Railway Minister Ashwini Vaishnaw outlined that a total of 89 kilometers of track will be laid under the two projects. The Kokrajhar–Gelephu line, stretching nearly 70 km, will have six stations, close to 100 bridges, and around 40 underpasses, with construction expected to take four years. The 19 km Banarhat–Samtse line will feature two stations, one major bridge, 24 minor bridges, a flyover, and 37 underpasses and is expected to be completed in three years at a cost of ₹577 crore. Both lines will be capable of handling passenger and freight traffic, including Vande Bharat trains, and will use the latest signalling systems.

Around 80% of Bhutan’s trade is with India, most of it routed through Indian ports. Improved rail connectivity is therefore seen as critical to Thimphu’s economic growth and integration with global markets.

The railway projects will be financed jointly, with India funding the sections on its side of the border and Bhutan’s share covered under the ₹10,000 crore package committed by New Delhi for Bhutan’s 13th Five-Year Plan (2024–29).

The announcement comes as India intensifies efforts to expand its regional transport footprint, from the BIMSTEC maritime cooperation agreement to initiatives such as IMEC, INSTC, and the Eastern Maritime Corridor.