India suspends Rs 80 billion Railway Projects in Bangladesh, eyes Nepal and Bhutan as alternative transit routes !

KATHMANDU, APRIL 24: India has recently halted nearly Rs 80 billion (INR 50 billion) worth of funding and construction work on key railway connectivity projects in Bangladesh, citing concerns over ongoing "political turmoil" and the "safety of labour," according to international media sources.

"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," the sources state.

Additionally, there is reportedly a renewed 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, according to the sources.

In response, Indian railway authorities are said to be 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 reportedly confirmed that survey work for these expansions is already underway.

India is also said to be 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 pose logistical challenges, they could reduce India’s dependence on Bangladesh for regional rail connectivity, offering a more stable and secure route, the sources remark.