India, Bhutan Approve First Rail Links Projects

India and Bhutan have approved the first cross-border railway connectivity projects with Bhutan, costing over ₹4,000 crore.

Objective: To boost trade, economic engagement, and connectivity between India and Bhutan.

Two rail projects announced:

These will be first-ever railway lines in Bhutan, connecting it to India’s rail network.
Total span: Kokrajhar-Gelephu – 66.66 km in India, 2.39 km in Bhutan; Banarhat-Samtse – 17.42 km in India, 2.13 km in Bhutan.
Construction scheduled to begin FY 2025-26, with timelines of 4 years for Gelephu line and 3 years for Samtse line, subject to land acquisition progress.

Bhutan currently has no railway network.
The projects are the result of nearly two decades of efforts and formalized cooperation between India and Bhutan.
2005 MoU: Signed between India and Bhutan for establishment of five potential railway links:
1. Hasimara (WB) – Phuentsholing (18 km)
2. Kokrajhar (Assam) – Gelephu (69 km)
3. Pathsala (Assam) – Nanglam (40 km)
4. Rangia (Assam) – Samdrupjongkhar via Darranga (60 km)
5. Banarhat (WB) – Samtse (20 km)
Feasibility studies conducted by RITES (PSU under Ministry of Railways) in 2008.
Detailed Project Reports (DPRs) prepared by Northeast Frontier Railway (NFR).
Projects gained momentum after PM Narendra Modi’s Bhutan visit in March 2024.

1. Kokrajhar – Gelephu (69 km)

Connects Gelephu Sarpang district (Bhutan) with Kokrajhar & Chirang districts (Assam).
Stations: Balagaon, Garubhasa, Runikhata, Shantipur, Dadgiri, Gelephu.
Infrastructure: 2 important bridges, 29 major bridges, 65 minor bridges, 2 viaducts, 2 goods sheds, 1 overpass, 39 underpasses.
Construction period: 4 years.

2. Banarhat – Samtse (20 km)

Connects Samtse district (Bhutan) with Jalpaiguri district (West Bengal).
Stations: Ambari, Samtse.
Infrastructure: 1 major bridge, 24 minor bridges, 1 overpass, 37 underpasses.
Construction period: 3 years.

Major hubs:

Gelephu: Being developed as Mindfulness City (autonomous region; 2,600 sq. km; 5% of Bhutan).
Samtse: Industrial town for manufacturing and exports (dolomite, ferro-silicon, quartzite, stone chips).

Bilateral Trade:

India is Bhutan’s top trading partner, accounting for ~80% of total trade.
2016 Trade, Commerce, and Transit Agreement: Free trade agreement and duty-free transit for Bhutanese goods via India.

Projects expected to:

Increase trade in Bhutan and India’s northeastern states.
Improve passenger and cargo movement between the two countries.
Strengthen India-Bhutan strategic and economic ties, amid regional geopolitics and China’s influence.