India on Monday unveiled plans to build two cross-border railway links with Bhutan, marking the first such connectivity projects with the Himalayan nation. The initiative, costing over Rs 4,000 crore, aims to strengthen trade ties and enhance economic engagement between the two countries.
The projects will connect the Bhutanese towns of Gelephu and Samtse with Kokrajhar in Assam and Banarhat in West Bengal, respectively.
The announcement came after Foreign Secretary Vikram Misri held consultations with Bhutanese Foreign Secretary Aum Pema Choden, reviewing the full spectrum of bilateral engagements, External Affairs Ministry spokesperson Randhir Jaiswal said in a post on X.
According to the ministry, both sides noted progress in key areas of cooperation, particularly highlighting the successful commissioning of all six units of the 1,020 MW Punatsangchhu-II hydropower project. This milestone marks a major step in realizing the India-Bhutan Joint Vision on Energy Partnership.
The discussions also underscored progress in ongoing development projects under Bhutan’s 13th Five-Year Plan, supported by India. The MEA said the initiatives are advancing steadily and delivering tangible benefits to the Bhutanese population.
At a press briefing, Misri described India and Bhutan’s relationship as “one of exceptional trust, mutual respect, and understanding,” rooted in cultural ties, people-to-people connections, and shared developmental and security interests. He added that the railway projects were agreed upon during Prime Minister Narendra Modi’s visit to Bhutan last year. The briefing was also attended by Railway Minister Ashwini Vaishnaw.
India has long been Bhutan’s largest developmental partner. Misri noted that the Indian government has committed Rs 10,000 crore for Bhutan’s 13th Five-Year Plan (2024–2029), covering project-tied assistance, high-impact community development, economic stimulus programmes, and grants—double the allocation of the previous plan.
Highlighting the economic importance of the rail links, Vaishnaw said most of Bhutan’s EXIM trade passes through Indian ports. “Seamless rail connectivity is crucial for Bhutan’s economic growth and for providing better access to the global network,” he said. The Railway Minister also stressed the strategic significance of Samtse and Gelephu in Bhutan’s development planning.
The announcement comes amid growing strategic interest from China in Bhutan, underlining India’s efforts to reinforce its long-standing partnership with the Himalayan nation.
The MEA said the talks were held in a “friendly and cordial atmosphere, in keeping with the well-established tradition of regular exchanges and the unique bonds of friendship and cooperation between the two countries.” It added that the next Development Cooperation Talks will be held in Thimphu at a mutually convenient date.