India has announced 2 new rail links that will connect Bhutan to India’s rail network for the first time. The Kokrajhar-Gelephu (69 km) and Banarhat-Samtse (20 km) lines cost Rs 3,456 crore and Rs 577 crore and will be built in four and three years.
On September 29, 2025, India and Bhutan signed an inter-governmental MoU to build the first cross-border rail links between the two countries. The two lines are: Kokrajhar (Assam) to Gelephu (Bhutan), which is about 69 km and budgeted at Rs 3,456 crore and Banarhat (West Bengal) to Samtse (Bhutan), which is about 20 km and budgeted at Rs 577 crore. The total plan cost is Rs 4,033 crore. The announcement was made by Union Railway Minister Ashwini Vaishnaw and India’s Foreign Secretary Vikram Misri and recorded in the Ministry of External Affairs statements.
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These projects will connect Bhutan for the first time to India’s long rail network. Officials said the Kokrajhar-Gelephu line will be completed in about four years and the Banarhat-Samtse line in about three years from the date construction starts.
Route and construction details
The Kokrajhar-Gelephu line will start on the Indian rail grid at Kokrajhar in Assam and run into Bhutan’s Sarpang district to Gelephu. It will have six stations on the route inside India and up to the border and include major civil works: two viaducts, 29 major bridges, 65 minor bridges, two goods sheds, a road-over-bridge and many underpasses. A small section, around 2.39 km, will lie within Bhutanese territory near Gelephu.
The shorter Banarhat-Samtse link will start from Banarhat in West Bengal and reach Samtse in southern Bhutan. It is planned to include two stations, one major bridge, multiple minor bridges, a flyover and dozens of underpasses to keep road traffic moving and reduce local disruption.
Both lines are designed not only for passengers but also for goods. The plan includes facilities for cargo handling so traders can move exports and imports between Bhutan and Indian ports more easily.
Why this is historic for Bhutan
Bhutan currently has no railway network. The new links will give the Himalayan kingdom its first direct rail connection to another country. That is a major change in how Bhutan can move goods and people, because rail is often cheaper and faster for heavy freight than road transport. Bhutan’s Gelephu and Samtse towns are set to gain especially! Gelephu is planned as a ‘Mindfulness City’ and Samtse is developing as an industrial hub. Faster transport will help both plans.
Officials say the lines will make it easier for Bhutan to export products such as minerals and manufactured goods by linking to India’s ports and broad rail network. For ordinary people, trains can make travel cheaper, create new jobs and support tourism growth.
Economic benefits for both sides
Trade and jobs: India is Bhutan’s largest trading partner. The rail links will lower transport costs and reduce travel time for goods moving between Bhutan and Indian ports. This should help Bhutan’s factories and traders, and also boost business in nearby Indian towns in Assam and West Bengal. New logistics and service jobs are expected in both countries.
Tourism and people-to-people contact: Gelephu’s development as a Mindfulness City aims to attract tourists interested in nature and wellness. Easier train access will bring more visitors, and will also support local hotels, guides and small businesses. The improved connectivity will let families and communities travel more easily for work, health and education.
Development projects: India’s funding and technical help are already part of a larger package of cooperation. New rail lines join other Indian-funded projects such as hydropower, health, roads and community development which aim to raise living standards in Bhutan. The MEA noted many ongoing PTA (project-tied assistance) and HICDP projects that India supports under Bhutan’s 13th Five-Year Plan.
Strategic and security reasons
Strengthening the northeast lifeline: These lines lie not far from the Siliguri Corridor, the narrow stretch of land (often called the ‘Chicken’s Neck’) that connects India’s northeast to the rest of the country. Banarhat sits roughly 70 km from the Siliguri Corridor and Kokrajhar about 220 km away. Improving rail and road links in this area reduces the risk that the northeast could become isolated during conflict or disaster. Officials say better transport is vital for moving supplies and people quickly to and from the northeast.
Border posture and logistics: The Doklam standoff of 2017 showed how important quick logistics and supply routes are in this region. By adding rail options close to the India-Bhutan border, India strengthens the resilience of transport networks that are important for both civil life and national security. The rail lines also support India’s aim to improve border infrastructure in its hilly and border states.
But leaders stress that the projects are primarily for development, trade and people-to-people ties, not military use. Still, in any country, large transport projects have both civilian and strategic effects.
The long road that led to the deal
Talks about rail links between India and Bhutan have been under discussion for two decades. A key step came on January 25, 2005, when India and Bhutan signed an MoU that proposed five possible rail routes linking border towns. Progress moved slowly for many years because of technical, geographical and planning reasons. Momentum returned after high-level meetings and during Prime Minister Narendra Modi’s visit to Bhutan in March 2024, when the text of the rail MoU was initialled. The new agreement now makes the first two routes ready to begin implementation.
The work reflects years of surveys and talks between Indian railway planners and Bhutan’s government. Local needs, environmental assessments and land arrangements all had to be considered before final approval.
How the projects will be funded and what India promised
India will fully fund the two rail lines. The overall project cost is Rs 4,033 crore, covered by the Government of India. This funding is part of a broader development package: New Delhi has committed INR/Nu 10,000 crore (about INR 100 billion) to support Bhutan’s 13th Five-Year Plan (2024-2029). That support includes project-tied assistance (PTA), high-impact community development projects (HICDP) and budgetary help under an Economic Stimulus Programme (ESP) and programme grants. The MEA’s public statement gives the full figures and lists many ongoing projects.
Officials also said some PTA projects and HICDPs approved earlier are in progress and India has released tranches of funds under ESP and programme grants. During the latest talks, both sides approved additional PTA projects for the 13th Five-Year Plan covering health, connectivity and other sectors.
Likely timeline and what to expect next
Officially, the Kokrajhar-Gelephu line is expected to be completed within four years and the Banarhat-Samtse line in three years from the start of construction. Before major work begins, there will be final detailed design studies, tendering for contractors, land and forest clearances, and local consultation. Construction will include building bridges, viaducts and goods handling facilities.
Because part of the Kokrajhar-Gelephu line lies inside Bhutan, both governments will coordinate closely during construction and during future operations on the cross-border sections. There will also be steps to ensure safety, customs and immigration rules for cross-border passenger and freight movement. The MoU and follow-on agreements will set the rules for those areas. MEA India
Likely challenges and open questions
Land and environment: Building rail lines in hilly and riverine zones needs careful study. Bridges and viaducts are expensive and must meet safety and environmental norms. Local land acquisition can also slow projects unless handled sensitively with communities.
Operations and border procedures: India and Bhutan will need agreed rules for trains entering and leaving Bhutan. This includes customs, immigration, security checks, and who operates services inside Bhutan. These operational details will be worked out in follow-on agreements.
Economic returns and integration: For trade gains, Bhutan and the nearby Indian states must build good cargo handling and port links. Success will also depend on how well local businesses, exporters and tourism services use the new rail routes.
What this means for india’s northeast and the region
For India’s northeast, new links to Bhutan are part of a larger push to improve roads, rail and border infrastructure. Over the past years New Delhi has increased spending on roads and railways in the region, aiming to bring faster transport and more jobs. The new Bhutan rail links add another connection that helps move goods and people across borders and reduces pressure on single road corridors. This fits India’s broader plan to make the northeast more integrated with the rest of the country and with neighbouring states.
Regionally, better links with Bhutan can help integrate supply chains in South Asia and support projects such as hydropower and tourism, which both countries have been discussing for years. The new rail links underline India’s long-term partnership with Bhutan and its role as a development partner in the neighbourhood.
The Kokrajhar-Gelephu and Banarhat-Samtse rail links mark a historic step: for the first time, Bhutan will connect by rail to a neighbour’s network. The projects promise clear benefits such as cheaper trade, more tourists, new jobs and stronger connectivity for India’s northeast. At the same time, careful planning, environment checks, and close India-Bhutan coordination will be vital to make the promise real. The coming months will show how fast both countries move from the MoU to ground work and then to running trains.
Highlights: The 5 most important points
Two rail links announced: Kokrajhar-Gelephu (69 km) and Banarhat-Samtse (20 km)
Cost: Rs 3,456 crore (Kokrajhar-Gelephu) + Rs 577 crore (Banarhat-Samtse), which is Rs 4,033 crore total
Timelines: 4 years for the longer line, 3 years for the shorter one
These are Bhutan’s first-ever rail links and are fully funded by India
Projects carry both economic benefits (trade, tourism, jobs) and strategic value (Siliguri Corridor resilience)
(With ANI inputs)