Bhutan King announces over 1,000 sq km Gelephu city project along Indo-Bhutan border

The Gelephu project in Sarpang district to Bhutan’s south would be a “Special Administrative Region” run under different laws to facilitate more international investment.

Bhutan's King Jigme Khesar Namgyel Wangchuck on December 18 unveiled plans for a significant urban development initiative known as the Gelephu Special Administration Region (SAR). This ambitious project aims to foster economic ties between Bhutan and Assam, spanning an expansive area exceeding 1,000 square kilometres in close proximity to the Indian border.

During his 10-day visit to India, the King discussed the Gelephu project with Prime Minister Narendra Modi. The project will be part of the Sarpang district Special Economic Zone (SEZ), including an international airport at Gelephu. Discussions have taken place regarding the establishment of a 58-kilometre rail connection between Gelephu and Kokrajhar in Assam. Furthermore, explorations into the feasibility of a second rail link, spanning 18 kilometers and connecting Samtse in Bhutan with Banarhat in West Bengal, were also initiated.

The King pitched the project as an “economic corridor connecting South Asia with Southeast Asia via India’s northeastern States.” He thanked PM Modi and the Government of India for agreeing to build the first India-Bhutan railway line to Gelephu, which would also connect with roadways and border trading and crossing points into Assam and West Bengal. Over time, the project aims to give Bhutan access to Myanmar, Thailand, Cambodia, and Singapore.

The Gelephu project in Sarpang district to Bhutan’s south would be a “Special Administrative Region” run under different laws to facilitate more international investment. The project is expected to follow environmental standards and sustainability as a goal and will aim to attract “quality investment” from “specially screened” international companies. The plans for Gelephu include an international airport, "zero-emission" industries, a "mindfulness city" that plays to Bhutan’s strength in tourism and wellness, and infrastructure companies.