Singh and Gandhi will jointly flag off the first train on the 18-km-long section between Banihal in Jammu and Qazigund in Kashmir, marking start of the service.
The Banihal-Qazigund section, which includes an 11-km-long tunnel, will reduce the distance from 35 km (by road) to 18 km. It has been constructed at a cost of Rs 1,691 crore.
This rail section is very significant as it will provide an all-weather link to Kashmir valley which often gets cut off from the rest of the country due to snowfall during winters.
Northern Railway is coordinating with Jammu and Kashmir government for arrangements for the bus service.
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"The bus service will be available from Udhampur to facilitate passengers availing train from Banihal next month," a senior Northern Railway official said.
Train service is already operational within Kashmir valley in the 118-km-long route between Qazigund and Baramulla in north Kashmir.
"It (Qazigund-Banihal section) was a challenging task. Besides the difficult terrain, land was acquired for the Kashmir rail link project in adverse law and order situation in the state," the official said.
Trial run on this section was successfully done on December 28 last year and since then trains carrying stones are running on regular basis.