The Bhutanese Leading the way.
Bhutan’s first railway connections to India will be developed at an estimated total cost of Nu 40.32 billion (bn), with full financial support from the Government of India (GoI).
The budget allocation covers the Gelephu–Kokrajhar railway line, estimated at Nu 34.56 bn, and the Samtse–Banarhat railway line, estimated at Nu 5.76 bn.
The Minister of Foreign Affairs and External Trade, DN Dhungyel, during the 24th Meet-the-Press session shared that following the signing of a Memorandum of Understanding (MoU) between the Governments of Bhutan and India, the first Railway Project Steering Committee (PSC) meeting was held on 20th November 2025.
The meeting was co-chaired by the Secretary of the Ministry of Infrastructure and Transport (MoIT), Royal Government of Bhutan (RGoB), and the Additional Secretary (North), Ministry of External Affairs, GoI.
Lyonpo DN Dhungyel said that during the meeting, both sides clarified roles and responsibilities, addressed design and site-related issues, and agreed on next steps to resolve existing bottlenecks, paving the way for the construction of the Gelephu and Samtse railway projects.
Gelephu–Kokrajhar Railway Project
The Gelephu–Kokrajhar railway line is currently undergoing field verification and alignment review.
A team from the Northeast Frontier Railway (NFR) is conducting field surveys in Gelephu to verify and, where necessary, adjust the centerline of the proposed alignment, which was pegged using precast RCC pillars on 22nd October 2025 to mark the route for subsequent survey activities.
The project will be fully funded by the GoI, with procurement to be handled too. The contractor will be selected after the completion of detailed design and ground works.
Construction is expected to begin in the first quarter of 2027.
Lyonpo said that the project is a historic milestone in Bhutan-India relations, reflecting deepening economic partnership and enhanced connectivity.
He expressed that it would be a great honor if the project was inaugurated by Indian Prime Minister Shri Narendra Modi.
Samtse–Banarhat Railway Project
Lyonpo DN Dhungyel said the Samtse–Banarhat railway line is also fully funded by the GoI.
He said that following the first PSC meeting, the RGoB requested minor terminal design modifications to avoid impacting a newly constructed quarantine center in Samtse.
In response, the NFR team successfully completed centerline pegging of the revised alignment, again using RCC pillars to clearly demarcate the route for further survey activities.
