India Earmarks Financing for Railway Connectivity with Bhutan

9 September 2023

The Government of India has committed to finance the expansion of railway infrastructure in the country’s northeastern region toward Bhutan. It has earmarked around INR 120 billion (around $1.4 billion) for the project, which includes INR 10 billion (around $120 million) for the completion of a 57.5-km railway line that will seamlessly connect Kokrajhar in Assam, India, to Gelephu in Sarpang, Bhutan. This project envisages reshaping regional connectivity and boosting economic prospects, opening more avenues for tourism and trade. Target completion of the project is by 2026.

The railway project can help facilitate the export of goods, promote people-to-people connectivity, and strengthen bilateral ties.

The Governments of Bhutan and India formally committed to the shared vision of creating an extensive railway network connecting towns along their shared border in 2005, signing a Memorandum of Understanding.


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