GMR explores investments in Bhutan’s marquee Gelephu project

New Delhi: Infrastructure major GMR is in talks with authorities in Bhutan for potential investments in the newly announced Gelephu Mindfulness city project, people familiar with the matter said. King Jigme Khesar Namgyel Wangchuk of Bhutan had unveiled the project in his National Day address on 17 December.

The initiative aims to attract global investments to the secluded Himalayan kingdom and also enhance connectivity with India. "South Asia is experiencing an unprecedented economic transformation. This is a period of growth and a period of immense opportunities for our region, which is home to around two billion people.

The land connection from Gelephu or Samdrup Jongkhar through Assam and Northeast Indian states, to Myanmar, Thailand, Cambodia Laos, Vietnam, Malaysia and Singapore, is a vibrant economic corridor linking South Asia to Southeast Asia," King Wangchuk had said while announcing the project. The proposed Special Administrative Region (SAR) in Gelephu, located along the border with India, could reshape Bhutan's economic landscape.

The SAR will have autonomy and legal independence to secure investments and develop the 1000 square km project. Bhutan is seeking Indian investments for essential infrastructure, including an airport and roads, to develop the SAR. It is in discussions with GMR to develop the SAR, complete with infrastructure required to push the region to becoming a key regional economic centre, according to persons cited above.

GMR is known for its expertise in the energy and infrastructure sectors, and thus could be a potential partner for developing the SAR's airports, highways, warehousing, power infrastructure, and waste management facilities. The company could also take up the overall operation and maintenance of the region along with Bhutanese agencies.

GMR is currently working on a special investment region (SIR) in Krishnagiri, Tamil Nadu, involving similar infrastructure development. The company could replicate these efforts in Bhutan's SAR. Bhutan's ruler has made two visits to India this year, focusing on economic relations and meeting industry leaders, including GMR's Srinivas Bommidala, business chairman for energy and international airports.

Bhutanese media reports indicate that the project will require investment in airports, roads, and bridges, aligning with GMR's interests. Queries mailed to the GMR group and the ministry of external affairs went unanswered at press time. This development comes amid India's broader strategy to enhance connectivity with neighbouring countries and key markets, to counter China's growing influence.

In Bhutan, Indian investments could help alleviate an economic crisis that has seen youths leave the country in search of opportunities abroad. It has also seen Thimphu broach the establishment of diplomatic relations with China, in hopes of attracting Chinese investment. India is already financing a 1,000 crore railway project connecting Kokrajhar, Assam to Gelephu, Bhutan, with a 2026 completion target.

In the region, India's projects include the $500 million Greater Male connectivity project in the Maldives, the Sittwe port in Myanmar, and enhanced inland waterway and railway connectivity with Bangladesh. India is also exploring connections to Bangladesh's Matarbari port and considering investments in Indonesia's Sabang Port, as reported by .

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