India to extend its railway grid to Bhutan: how this will help the neighbours, Pg14.

Key Highlights:

• India and Bhutan have signed an MoU for two railway projects: Kokrajhar (Assam)-Gelephu (Bhutan) and Banarhat (Bengal)-Samtse (Bhutan).
• The Kokrajhar-Gelephu line, spanning 69 km, is estimated to cost Rs 5,456 crore.
• The Banarhat-Samtse line, covering 20 km, will be built with an investment of Rs 577 crore.
• These projects aim to strengthen ties, boost trade, and counter China’s influence in the region.

Detailed Insights:

• The railway projects originated from a 2005 MoU to establish five railway links between India and Bhutan.
• RITES conducted initial feasibility studies in 2008, and the Northeast Frontier Railway (NFR) prepared detailed project reports.
• Gelephu is being developed as a 'Mindfulness City' with autonomous powers, while Samtse is envisioned as an industrial town.
• The 2016 trade agreement between India and Bhutan established a free trade zone, with India accounting for 80% of Bhutan's total trade.
• The Kokrajhar-Gelephu project has been declared a special railway project to expedite clearances and land acquisition.

Key Concepts Involved:

• MoU (Memorandum of Understanding): A formal agreement between parties outlining intentions and cooperation.
• Free Trade Agreement: An agreement between countries to reduce or eliminate trade barriers.
• Land Acquisition: The process of acquiring private land for public infrastructure projects.