India and Bhutan on Monday signed an Inter-Governmental MoU to establish the first-ever cross-border railway links, marking a milestone in bilateral connectivity and cooperation.

The agreement, signed during Bhutanese Foreign Secretary Aum Pema Choden’s visit to New Delhi, envisions two major railway projects — a 69-km Kokrajhar–Gelephu line connecting Assam with southern Bhutan and a 20-km Banarhat–Samtse line linking West Bengal with Bhutan. Together, these projects are estimated at ₹4,033 crore.

“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 Ministry of External Affairs (MEA) said in a statement following talks between Foreign Secretary Vikram Misri and his Bhutanese counterpart.

Both sides also welcomed the commissioning of all six units of the 1,020 MW Punatsangchhu-II hydropower project, describing it as a “major milestone” in the India-Bhutan Joint Vision on Energy Partnership. They noted steady progress in other cooperation projects under Bhutan’s 13th Five Year Plan, backed by India’s development assistance.

Union Railways Minister Ashwini Vaishnaw emphasized that the new links would boost regional trade, tourism, and connectivity. Gelephu, being developed as a “mindfulness city,” and Samtse, planned as an industrial hub, are expected to become key economic gateways along Bhutan’s 700-km border with India.

The Northeast Frontier Railway confirmed that the Kokrajhar–Gelephu project has been declared a special railway project, enabling expedited clearances. India’s Ministry of Railways will fund work on the Indian side, while the Ministry of External Affairs will finance Bhutan’s share, ensuring timely completion.

India, already Bhutan’s largest trading partner, expects the projects to deepen economic integration and support balanced development across the region.