India has suspended, almost ₹ 5000 crore hemth of financing, axis for some estimates, and other works related to construction on the rail connectivity initiative in Bangladesh, citing “political agitation” and “labor security”.
The decision, which stops at least three in entry projects and stops the work of the survey in five others, mostly interrupts the plans to link the northeast of India with its continent through routes that cross Bangladesh, sources told the sources. Business line.
As New Delhi recalibrates, it is redirecting resources to reinforce railway infrastructure in northern India and explore alternative connectivity through Bután and Nepal, possible to remodel regional commercial dynamics. The sources say that a connectivity plan of ₹ 3500 – 4000 million rupees is explored through Bután and Nepal.
The stagnant projects were critical to connect the northeast states of India through the Bangladesh rail network. They were designed to reduce the dependence of the narrow Siliguri corridor, or “chicken neck”, which are the continental India region.
“So at this time we are not providing construction materials or other articles to Bangaldesh. There is an arrest on the financing of the project for the connectivity route was through the neighboring country. First there is some political stability. Request anonymity.
India’s commercial relationship with Bangladesh, valued at $ 12.9 billion in 2024, is a cornerstone of regional economic ties. Bangladesh has been the largest commercial partner in India in southern Asia.
Stagnant projects
Three projects assisted by India that have now been suspended include the cross-border rail link of Akhaura-Agrartalla and the placement of Khulabura-Sahabajpur Riel; KHULNA – Railway of the Mongla port; And the Dhaka – Tongi – Expansion Project of the Joydebpur Railway.
The Akhaura-Agrartala Cross-Broader Railway Link Project (Tripura) has been executed under the assistance of the Indian Government of almost ₹ 400 million rupees extended to the neighboring country. The length of the railway link is 12.24 km with a double -caliber rail line of 6.78 km in Bangladesh and 5.46 km in triptura. The Khulabura-Sahabajpur rail line is part of this project; And aims to improve Assam connectivity using existing trade routes and establishing new clues.
The Khulna – Mongla Port Rail Line project is implemented under the concessional credit line with a total project of the project of $ 388.92 million (₹ 33 billion rupees). The project implies the construction of approximately 65 kms of broad caliber railway between the Mongla port and the existing rail network in Khulna. With this, Mongla, the second largest port in Bangladesh, connects with the broad caliber rail network. India has operational rights to a terminal in Mongla.
The Dhaka – Tongi -Joydebpur rail expansion project that must be completed in June 2027 has seen a delayed execution of less than 50 percent until last year. According to the reports, almost 1600 million rupees of the project would be through Indian assistance (by exim Bank of India). He also has leg problems to obtain authorizations of funds, sources said.
“In five others, location surveys were carried out. They stagnated,” said a second official.
Alternative Regional Strategy
In response, India, turning national and alternative regional strategies.
The government is exploring the possibility of duplicating and quadruplying online in Uttar Pradesh and Bihar, key arteries that feed on the Siliguri corridor, to improve capacity and reliability. “The survey work is underway,” said a second railway official.
Simultaneorly, New Delhi is exploring the railway links through Bután and Nepal, taking advantage of existing agreements such as the Indian-Nepal Railroad Pact and the proximity of Bután to the Northeast. These routes, although logistically complex, could diversify the connectivity options of India and reduce Bangladesh dependence.
For example, an earlier plan to improve connectivity between India and Nepal included the construction of 190 km or new lines between Biratnagar – New bad; and another 12.5 km of new lines in Galgalia – Bhadrapur – Kajali Bazar sections.
In Western Bengal (Improvement of connectivity in the chicken neck region) a new construction of the 170 km railway line is established in Kumedpur – Ambari Falakata segment; While 25 kms of new line line will be made to improve connectivity between Bengal and Bihar.
Posted on April 20, 2025