India reportedly halts Rs 5,000 crore rail projects in Bangladesh, eyes Nepal and Bhutan alternatives

Indian authorities are now exploring alternative transit routes through neighbouring countries like Nepal and Bhutan.

India has halted nearly Rs 5,000 crore worth of funding and construction work on key railway connectivity projects in Bangladesh, citing concerns over ongoing "political turmoil" and "safety of labour," according to a report by The Hindu BusinessLine.

These projects were part of an initiative aimed at enhancing connectivity between India’s mainland and its seven northeastern states through Bangladesh. However, due to the growing unrest and security uncertainties in Bangladesh, Indian authorities are now exploring alternative transit routes through neighbouring countries like Nepal and Bhutan. Additionally, there is a focus on expanding infrastructure within India, particularly through the strategically sensitive Siliguri Corridor, also known as the "Chicken's Neck."

The three suspended projects include the Akhaura–Agartala Cross-Border Rail Link, the Khulna–Mongla Port Rail Line, and the Dhaka–Tongi–Joydebpur rail expansion. Along with these, surveys for five other proposed rail routes have also been put on hold, The Hindu BusinessLine added.

In response, Indian railway authorities are accelerating efforts to double or quadruple existing rail lines in Uttar Pradesh and Bihar, key regions that feed into the Siliguri Corridor. A senior railway official confirmed to the Hindu BusinessLine that survey work for these expansions is already underway. Moneycontrol could not independently verify the report.

India is also exploring new rail corridors through Nepal and Bhutan, leveraging existing agreements such as the India–Nepal rail pact and Bhutan’s geographical proximity to India’s northeast. While these alternatives present logistical challenges, they could reduce India’s dependence on Bangladesh for regional rail connectivity, offering a more stable and secure route.