Gautam Adani eyes investment in Bhutan’s mega project

New Delhi, Nov 1: In an ambitious plan to draw investment and create an economic hub in Bhutan, second richest billionaire of India, Gautam Adani is exploring opportunities in “Gelephu Mindfulness City” (GMC), a large urban project planned to transform Bhutan’s southern Gelephu region near the Indian border.

According to sources quoted by Bloomberg, Bhutan’s newly appointed Gelephu Governor, Lotay Tshering, confirmed that Adani Group is in talks to develop solar and hydroelectric plants within the 1,000-square-kilometer township. This project will mark a forward-looking opportunity for Adani’s green energy initiatives as Adani’s multilateral company continues to extend its infrastructure portfolio beyond Indian borders, across Asia and beyond.

King Jigme Khesar Namgyel Wangchuk of Bhutan imagines GMC as a distinct model in urban development, aiming to rival prominent economic zones such as Hong Kong and Singapore. The Economist explains that the King hopes the city will draw a diverse mix of residents, from digital nomads and Buddhist pilgrims to crypto entrepreneurs and wealthy expatriates.

The concept reflects Bhutan’s unique cultural and economic ambitions, hoping to retain its youth and curb emigration by offering new opportunities at home while positioning itself as a gateway to India, much as Singapore and Hong Kong function for China.

Bhutan’s longstanding strategic relationship with India places the Gelephu project in a particularly favourable position for support from Indian investors and contractors, with India already pledging a $1.2 billion aid package.

This commitment underscores India’s continued friendly relationship with Bhutan, especially in light of Bhutan’s recent diplomatic overtures towards China, according to The Straits Times. Bhutan’s balancing act in foreign relations comes as India has intensified efforts to stay close to South Asian friendly countries amid concerns over China’s expanding footprint in the region.

With major investments pouring in, including a recent $700 million pledge by Reliance Group for power projects in and around GMC, Bhutan is set to attract tech investors through a regulatory framework inspired by Singapore’s legal standards and Abu Dhabi’s financial regulations, media reports suggest.

Aiming to be a progressive tech hub, the special administrative region will grant GMC greater regulatory autonomy, with plans to attract data centres and AI firms that seek renewable energy solutions. However, The Economist notes that GMC’s forward-thinking focus on tech and crypto investments may challenge the small nation’s regulatory resources, raising concerns about the potential for opaque funding and the origin of capital flowing into the city’s ambitious projects.

The Gelephu project is the latest example of Bhutan’s evolving economic policies, a shift that mirrors other regional projects like Saudi Arabia’s Neom and Indonesia’s Nusantara. Yet, unlike other mega-developments, Bhutan’s approach in GMC is strongly rooted in principles of Gross National Happiness, a development philosophy the nation has championed since the 1970s.

Bhutan’s leaders envision GMC as not only a financial centre but also a “mindfulness” retreat space, aiming to balance rapid urbanization with environmental stewardship and cultural preservation. Bhutan hopes to keep a steady check on potential environmental and social impacts, yet remains cautious about how best to ensure sustainable development.

Bhutan’s hopes for GMC also reflect to provide local employment and career paths that encourage its youth to stay or return after studying abroad as youth of Bhutan is leaving the country for their economic benefits.