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India approves ₹4,033 crore rail project to strengthen Bhutan ties with first direct train connection

  The Indian government has approved a ₹4,033 crore railway project connecting India and Bhutan. Railway Minister Ashwini Vaishnaw announced this step, marking a historic milestone in bilateral connectivity and cooperation.

Last Updated : Monday, 29 September 2025
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International News: To further strengthen India-Bhutan relations, Union Railway Minister Ashwini Vaishnav and Foreign Secretary Vikram Misri jointly announced a major railway project. This project will connect two Bhutanese cities, Gelephu and Samtse, with India by rail at a cost of ₹4,033 crore. Ashwini Vaishnav explained that this rail project will connect two important cities in Bhutan. Gelephu is being developed as a 'Mindfulness City', and Samtse is an industrial city. Both cities will be connected to Kokrajhar and Banarhat in India via rail network.

The Kokrajhar-Gelephu line will connect India's major industrial hub, Bongaigaon. Kokrajhar is a regional station, which will connect this project to India's 150,000-kilometer-long rail network. By constructing just 70 kilometers of new track, Bhutan will be connected to India's vast rail network. In total, this project will create an 89-kilometer rail network.

Ashwini Vaishnav said that India is Bhutan's largest trading partner and most of Bhutan's trade is conducted through Indian ports. Therefore, a good rail connection is essential for Bhutan's economy and connecting its people to the global network.

The Government of India will bear the expenses

During PM Narendra Modi's visit to Bhutan in March 2024, the two countries agreed on two railway lines: Kokrajhar-Gelephu and Banarhat-Samtse. The 16-kilometer-long Banarhat-Samtse section will connect West Bengal with Bhutan. These lines will provide Bhutan with its first rail connectivity. The entire project will be funded by the Indian government. Foreign Secretary Vikram Misri stated that India and Bhutan have a deep and trusting relationship, based on culture, people-to-people ties, and shared development and security interests.

India Doubles Aid For Bhutan

He also stated that India has always played a major role in Bhutan's development, especially in infrastructure and economic growth. India has pledged ₹10,000 crore in aid for Bhutan's 13th Five-Year Plan (2024-2029), double the previous plan's amount. This assistance includes projects, community development, economic programs, and grants.