India and Bhutan have inked a landmark Inter-Governmental Memorandum of Understanding (MoU) to establish the first set of cross-border railway links between the two nations. This strategic initiative is poised to significantly enhance connectivity, strengthen economic cooperation, and foster deeper people-to-people linkages.

The MoU outlines the development of two crucial rail lines: one connecting Kokrajhar in Assam, India, to Gelephu in Bhutan, and another linking Banarhat in West Bengal, India, to Samtse in Bhutan. The Kokrajhar-Gelephu line will stretch approximately 69 km and involves an investment of ₹3,456 crore. Notably, this line has been designated as a Special Railway Project (SRP) to facilitate expedited clearances and land acquisition. Gelephu is currently being developed as a "mindfulness city" by the Bhutanese government.

The second rail link, the Banarhat-Samtse line, will cover roughly 20 km and is estimated to cost ₹577 crore. Samtse is envisioned as an industrial hub, and this connectivity is expected to boost cross-border trade and economic opportunities. The total investment for both projects is projected to be over ₹4,000 crore.

The agreement was formalized during the visit of Bhutan's Foreign Secretary, Aum Pema Choden, to New Delhi, where she engaged in consultations with her Indian counterpart, Vikram Misri. Union Railways Minister Ashwini Vaishnaw also played a key role in announcing these projects, emphasizing the shared commitment to regional connectivity, sustainability, and economic cooperation.

Financially, the Indian Ministry of Railways will bear the costs for the infrastructure development on the Indian side. For the Bhutanese portion of the projects, the Indian government, through the Ministry of External Affairs, will provide support as part of Bhutan's 13th Five-Year Plan. India has committed a substantial ₹10,000 crore in support for Bhutan's current five-year plan, marking a 100% increase over the previous plan.

Beyond rail connectivity, both sides also acknowledged the successful commissioning of all six units of the 1020 MW Punatsangchhu-II hydropower project. This achievement represents a major milestone in the realization of the India-Bhutan Joint Vision on Energy Partnership, further solidifying the strong bilateral relationship between the two Himalayan neighbors.