
India and Bhutan signed an Inter-Governmental Memorandum of Understanding (MoU) on Monday to create railway lines between the two nations, further enhancing their people-to-people ties.
The Ministry of External Affairs (MEA) said late Monday evening that the Memorandum of Understanding (MoU), which was signed during Bhutan Foreign Secretary Aum Pema Choden’s visit to New Delhi, calls for the construction of the first set of cross-border rail linkages between Kokrajhar and Gelephu as well as Banarhat and Serhoamtse.
“These projects are part of our broader efforts to enhance connectivity between the two countries and will strengthen economic and people-to-people linkages,” the MEA said in a statement after conversations between Aum Pema Choden and Foreign Secretary Vikram Misri.
Both Foreign Secretaries examined the whole range of bilateral interactions during their meetings, noting the advancements made in each of the main areas of cooperation.
The successful commissioning of all six units of the 1020 MW Punatsangchhu-II hydropower project was specifically welcomed by them as a significant step towards the attainment of the India-Bhutan Joint Vision on Energy Partnership. Additionally, the statement noted that they were pleased with the continuing development cooperation projects and initiatives under Bhutan’s 13th Five Year Plan that were being carried out with assistance from the Government of India and were making good progress and benefiting the country’s citizens.
In order to improve connectivity and trade, Union Railways Minister Ashwini Vaishnaw earlier in the day announced new projects between India and Bhutan.
He emphasized the two nations’ common resolve to improve economic cooperation, sustainability, and regional connectivity. Key cross-border railway projects that will revolutionize bilateral relations were described in the announcement.
According to Kapinjal Kishore Sharma, Chief Public Relations Officer (CPRO) for the Northeast Frontier Railway (NFR), the plan identifies two major links: the 20-kilometer Banarhat–Samtse line, which connects West Bengal with Bhutan, and the 69-kilometer Kokrajhar–Gelephu line, which connects Assam with Gelephu in Bhutan.
Together, these initiatives, which are valued at an estimated Rs 4,033 crore, he continued, will significantly increase trade, tourism, and interpersonal interactions.
The main export and import centers of Bhutan are Samtse and Gelephu, which serve the 700-kilometer India-Bhutan border.
The Bhutanese government is developing Samtse as an industrial town and Gelephu as a mindfulness city.
According to the CPRO, the Kokrajhar–Gelephu line has been designated as a special railway project, allowing for accelerated approvals and land purchase in order to speed up execution.
As part of Bhutan’s 13th five-year plan, he said, the Indian government will fund the Bhutanese share through the Ministry of External Affairs, while the Ministry of Railways will finance the Indian side of the project.
This strategy fully supports Bhutan’s development needs while guaranteeing that the Indian side has the largest share of infrastructure.
These railway projects would strengthen economic relations and promote balanced regional growth with India, Bhutan’s largest trading partner.


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