During the Awami League government’s tenure, India received permission to run its own trains using Bangladesh’s railway network—from Gede in West Bengal to Dalgaon near the Bhutan border. Prior to that, India had joined three railway development projects in Bangladesh. These were part of efforts to develop a “transit corridor.” The projects included the construction of a new railway line between Bogura and Sirajganj, building a double-track railway between Khulna and Darshana, and converting the meter-gauge railway between Parbatipur and Kaunia into dual gauge. Following the fall of the Awami League government, India is now stepping back from these three projects due to the changed political situation.
Officials from the Ministry of Railways said a bilateral meeting between India and Bangladesh was held on March 5–6 this year. During the meeting, the Indian side expressed reluctance to finance the three projects. As a result, the Khulna–Darshana and Parbatipur–Kaunia projects are now on hold, while Bangladesh Railway is planning to implement the Bogura–Sirajganj project with alternative financing. However, India has yet to formally cancel the loan agreements for these projects. Because of that, Bangladesh Railway is unable to officially suspend the projects or begin securing alternative funding.
The projects were originally planned to be funded under India’s Line of Credit (LoC), with an implementation timeline from 2018 to 2025. But so far, there has been no visible progress.
Officials at Bangladesh Railway said that one of the key objectives of the Khulna–Darshana rail development project was to strengthen regional rail connectivity between India and Bangladesh. Once the double-track line was built, it would establish improved railway access to Mongla Port. That would pave the way for transporting goods from Mongla to various northeastern Indian states, as well as Nepal and Bhutan. The project was approved by the Executive Committee of the National Economic Council (ECNEC) in 2018. The target completion date was set for December 2025. The total estimated construction cost was BDT 35.07 billion, of which BDT 26.9 billion was expected to come from Indian loans.
One of the key sections of the railway route that India was allowed to use during the Awami League government—running from Darshana to Chilahati—is the proposed Sirajganj–Bogura railway line. Currently, as there is no rail link in this stretch, trains heading to Parbatipur and Chilahati must detour through Natore and Naogaon. If the Sirajganj–Bogura line is built, it would significantly shorten the distance. This project was approved by the Executive Committee of the National Economic Council (ECNEC) in 2018. The estimated construction cost was BDT 55.8 billion, of which BDT 31.46 billion was to come from Indian loans. Bangladesh Railway has already completed most of the land acquisition for the project. In the current fiscal year’s national budget, around BDT 19 billion has been allocated for land acquisition under this project.
The Parbatipur–Kaunia section currently has a meter-gauge line. A plan was taken to convert it into dual gauge through an LoC-funded project. Bangladesh Railway officials said once this line is upgraded to dual gauge, it will create opportunities for railway connectivity between Bangladesh and India, Bhutan, and Nepal. The project to convert the Parbatipur–Kaunia meter-gauge line into dual gauge was approved in 2018, with an estimated cost of BDT 16.83 billion, including BDT 13.67 billion in Indian loans.
According to sources in Bangladesh Railway, although India has expressed reluctance to finance the three projects, it has not yet formally canceled the loan agreements. As a result, progress on securing alternative financing has been stalled. One official told Bonik Barta that the Asian Development Bank (ADB) has shown interest in funding the Sirajganj–Bogura railway line. He said, “We are now trying to bring in a new investor through the ERD (Economic Relations Division). Since the land acquisition is already well underway, we hope the project won’t take too long to complete. For now, the government has decided to keep the Khulna–Darshana and Parbatipur–Kaunia projects on hold.”
When asked about India backing out from the three projects, Muhammad Fouzul Kabir Khan, Adviser to the Ministry of Railways, told Bonik Barta, “They (India) have wanted to withdraw from three projects. We didn’t raise any objection. Our focus now is on implementing the projects through alternative means. With that goal in mind, we’ve started preparing the necessary groundwork.”