India and Bhutan sign a historic MoU to launch two cross-border railway projects—Banarhat-Samtse and Kokrajhar-Gelephu—with ₹4,033 crore investment. Explore Project details.
The India Bhutan Railway has entered a historic new phase as both countries approve their first-ever cross-border railway projects: Banarhat-Samtse and Kokrajhar-Gelephu. With the signing of a strategic Memorandum of Understanding (MoU) in New Delhi, these projects are set to redefine mobility, trade, and regional development in South Asia.
Banarhat – Samtse (Bhutan) New Rail Line is a very important project because this connects the industrial city of Samtse: Hon’ble MR Shri @AshwiniVaishnaw#CabinetDecisions #NayiPatriNayiRaftaar pic.twitter.com/mHKKcip6Kw
— Ministry of Railways (@RailMinIndia) September 29, 2025
Key Features of India Bhutan Railway
Strategic Routes:
The India Bhutan Railway will connect Banarhat in West Bengal to Samtse, a crucial industrial hub in Bhutan. Simultaneously, the Kokrajhar-Gelephu corridor in Assam will link Indian rail networks to Gelephu, Bhutan, a city promoted as a mindfulness and eco-tourism destination. These routes are strategically selected to maximize trade and passenger mobility between the two nations.
Investment and Scale:
The total investment in the India Bhutan Railway project is estimated at ₹4,033 crore. Covering roughly 90 km of cross-border rail, the projects will feature six stations, multiple bridges, flyovers, and underpasses, ensuring seamless travel and efficient cargo movement.
Enhanced Connectivity:
With the completion of the India Bhutan Railway, Bhutan will gain direct access to India’s vast rail network of 1,50,000 km. This integration will streamline logistics, reduce travel time, and strengthen economic links between the two countries.
Economic and Strategic Benefits
The India Bhutan Railway promises to accelerate regional economic growth by providing faster and more reliable connectivity. As India is Bhutan’s largest trading partner, these railway projects will enhance trade, promote tourism, and facilitate smoother transportation of goods.
Union Railway Minister Ashwini Vaishnaw emphasized that the India Bhutan Railway would open new avenues for trade, port access, and tourism. By integrating Bhutan into India’s rail ecosystem, both nations aim to foster a stronger economic and diplomatic partnership.
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Construction Timelines:
- Banarhat-Samtse: Targeted for completion within three years, featuring two stations and modern infrastructure like bridges and flyovers.
- Kokrajhar-Gelephu: Scheduled for four years, including six stations, viaducts, bridges, and underpasses.
Developmental Support from India
India’s commitment to Bhutan’s 13th Five-Year Plan, including a pledge of ₹10,000 crore, strengthens the India Bhutan Railway initiative. This support covers technical assistance, infrastructure funding, and community development programs, ensuring sustainable growth alongside improved connectivity.
| Project Route | States/Cities | Length (km) | Investment (₹ crore) | Timeline | Features |
| Banarhat – Samtse | WB to Bhutan | ~20 | 577 | 3 years | 2 stations, flyovers, bridges, underpasses |
| Kokrajhar – Gelephu | Assam to Bhutan | ~70 | 3,456 | 4 years | 6 stations, viaducts, bridges, underpasses |
Regional Significance
The India Bhutan Railway is not only an infrastructure project but also a strategic enabler for regional integration. By facilitating smoother movement of goods and people, these railways will enhance trade efficiency, support tourism, and strengthen cultural and diplomatic ties. Bhutan’s industrial and tourism hubs will gain easier access to Indian markets, while India benefits from a more reliable regional supply chain.
Moreover, these projects align with broader regional development goals, including cross-border connectivity, sustainable tourism, and economic diversification. By linking industrial centers with tourist destinations, the India Bhutan Railway supports both economic and social growth for communities along the routes.
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Conclusion
The India Bhutan Railway marks a transformative step in South Asian infrastructure development. By integrating Bhutan into India’s expansive rail network, improving trade corridors, and enhancing regional mobility, these projects promise long-term economic and strategic benefits.
As construction progresses over the next few years, the India Bhutan Railway will serve as a model for cross-border cooperation, demonstrating how infrastructure can strengthen bilateral relations and foster inclusive growth.