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India and Bhutan to Launch First Rail Connectivity Project Worth ₹4,033 Crore

Written by: Team Angel OneUpdated on: 30 Sept 2025, 7:46 pm IST
India to fund ₹4,033 crore rail project linking Bhutan’s Gelephu & Samtse, boosting trade, connectivity and bilateral ties with a historic first rail link.
India and Bhutan to Launch First Rail Connectivity Project Worth ₹4,033 Crore
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India has announced plans to provide Bhutan with its first-ever railway connectivity, marking a historic step in strengthening bilateral relations. The project, with an outlay of ₹4,033 crore, will connect Bhutan’s Gelephu and Samtse to India’s railway network.

Railway Project Details

As per the news reports, Union Railway Minister Ashwini Vaishnaw explained, "The India-Bhutan Railway Project aims to connect two important cities in Bhutan. As shared by the Foreign Secretary, one is Gelephu, being developed as a mindfulness city, and the other is Samtse, an industrial city. Both projects will be linked to the Indian Railways network at Kokrajar and Banarhat." 

He further highlighted, "The Kokrajar–Gelephu line connects to Bongaigaon, a major industrial hub in India. Kokrajar serves as the regional station, linking the project to the entire Indian railway network. In essence, by constructing approximately 70 km of new track, Bhutan gains access to 150,000 km of India’s railway network. This demonstrates the significant advantage of the network effect."

The overall project spans around 90 km, including the 16 km Banarhat–Samtse line, linking West Bengal with Bhutan. India will fully fund the investment for both railways.

Bilateral Ties and Developmental Support

Foreign Secretary Vikram Misri emphasised, "As you are all aware, India and Bhutan share a relationship of exceptional trust, mutual respect and understanding. This is a relationship that is rooted in cultural and civilizational ties, extensive people-to-people relations, and our shared developmental and security interests. These ties are reflected in very close contact at the highest levels."

For Bhutan’s 13th Five-Year Plan (2024–2029), India has pledged Rs 10,000 crore, "which covers project-wide assistance, high-impact community development projects, the economic stimulus program and a program grant. And this quantum constitutes a 100 per cent increase over the 12th five-year plan figures."

Read More: Govt Approves ₹11,169 Crore Rail Multitracking Projects to Boost Freight and Village Connectivity!

Conclusion 

The India-Bhutan rail project marks a transformative step in regional connectivity. By linking Bhutan to India’s vast railway network, it strengthens trade, enhances accessibility, and reflects the deep trust between both nations. India’s continued developmental support underscores its commitment to Bhutan’s modernisation and long-term economic growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Sep 30, 2025, 2:16 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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