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It was among the over 2,000 rail infrastructure projects worth about Rs 41,000 crore unveiled by the prime minister.
The design of the Rangpo railway station will draw inspiration from the rich culture, heritage and architecture of Sikkim, the prime minister said in his address via video conference.
Governor Lakshman Prasad Acharya was present at Khanikola in Rangpo in Pakyong district where a function was held.
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He also noted the advantages of the railways during the monsoon, when the NH-10 encounters disruptions.
The railways will be a blessing during such times, enhancing connectivity and reliability, he added.
The station will be a part of the under-construction 45-km rail line from Sevoke near Siliguri in West Bengal to Rangpo in Sikkim. It will have 14 tunnels and 22 bridges.
The track on the Sevoke-Rangpo section of the Northeast Frontier Railway will have the capacity to handle 25 ton and trains can run at a maximum speed of 110 kmph.
There will be three stations between Sevoke and Rangpo — Riyang, Teesta Bazar and Melli, all in West Bengal.
The Teesta Bazar station will be underground.
The project was awarded to IRCON International in May 2010 at a cost of Rs 4,084.69 crore and the original deadline was May 2015. The revised date is now December 2024 with a revised cost of Rs 12,474.07 crore, according to officials.