Transportation Trade Routes
India, Bhutan Sign Pact on First-Ever Rail Link
Two alignments totaling 77 km will mark Bhutan’s first entry into the Indian rail grid

India’s agreement with Bhutan will create the Himalayan kingdom’s first cross-border railway, a $483-million project involving bridge and tunnel construction through rugged, forested terrain, similar to the passage pictured above, from Shimla to Kalka in Himachal Pradesh.
India and Bhutan have signed an intergovernmental agreement to build the Himalayan kingdom’s first rail connection, a move officials in New Delhi say will deepen economic and strategic ties.
The memorandum of understanding, announced Sept. 29 during Bhutanese Foreign Secretary Pema Choden’s visit to New Delhi, covers two new alignments: a 57-km line from Kokrajhar in Assam to Gelephu in Bhutan, and a 20-km line from Banarhat in West Bengal to Samtse.
A Northeast Frontier Railway map shows the proposed 57-km Kokrajhar–Gelephu alignment, Bhutan’s first cross-border link, with planned stations and river crossings through Assam’s Chirang district. Image courtesy of Indian Railways
Indian Foreign Secretary Vikram Misri stated that the projects have a combined outlay of roughly $483 million.
Railways Minister Ashwini Vaishnaw told local reporters the longer Kokrajhar–Gelephu alignment will require 18 bridges and 27 level crossings.
“It will be completed in four years, and will be a catalyst for trade, connectivity and people-to-people contact,” Vaishnaw said in a special briefing. The Banarhat–Samtse line is expected to be delivered in three years.
The initiative stems from years of study by Indian Railways’ Northeast Frontier Railway unit, which prepared the detailed project report. While the DPR itself has not been released, Indian officials say both alignments are fully surveyed and ready for tendering.
Bhutan has long discussed potential rail links with India, but the projects gained momentum after Prime Minister Narendra Modi’s state visit to Thimphu in March. The Indian Ministry of External Affairs described the rail agreement as “a transformative step in our unique and time-tested partnership.”
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Bhutanese officials have not yet released their own project statement. New Delhi’s announcement did not specify how costs would be shared, although the Indian side confirmed its responsibility for financing the DPRs and initial works.
If completed on schedule, the projects would integrate Bhutan into the broader Indian railway grid for the first time, offering a new trade route through Assam and West Bengal and further integrating the landlocked nation’s connectivity with South Asia.



