How Bhutan’s mega city project will link its economy to Assam

Bhutan plans to build a mega “international city” near the Indian border, covering an area of 1,000 square kilometre. The project was announced by Bhutanese King Jigme Khesar Namgyel Wangchuck in Thimpu on Sunday (17 December).

This massive city, the Gelephu Special Administrative Region (SAR), will connect Bhutan economically with Assam in India, according to Economic Times (ET).

What is the project and how will it link Bhutan with Assam? Let’s take a closer look.

Gelephu City project

Known as the ‘Gelephu Smartcity Project’, King Jigme Wangchuck touted it as an “economic corridor connecting South Asia with Southeast Asia via India’s northeastern States”, reported The Hindu.

The ambitious project in the Sarpang district to Bhutan’s south would be a “Special Administrative Region” that would be governed under different laws to open the door for more foreign investment.

The proposed land connection from Gelephu, traversing Assam and West Bengal, will over time reportedly give Bhutan access to Myanmar, Thailand, Cambodia, and Singapore.

The project also includes building an international airport at Gelephu, the second such airport in Bhutan.

According to ANI, the plans for Gelephu involve developing it as a “mindfulness city”, “fostering conscious and sustainable businesses inspired by Bhutan’s Buddhist spiritual heritage and unique identity”.

Bhutan-India economic connection

King Wangchuck, who discussed the Gelephu project with Prime Minister Narendra Modi and Assam chief minister Hemanta Biswa Sarma in two separate visits to India this year, thanked the Indian government for giving its nod for the construction of the first India-Bhutan railway line to Gelephu, as per The Hindu.

“I am also pleased to share that during my recent visit to India, the Government of India expressed their full commitment to improve and expand the major roads leading to Bhutan. They also pledged to connect two or three of our border towns with railway lines. I would like to express our heartfelt gratitude to PM Narendra Modi and the Government of India for their continued goodwill and support”, ANI quoted the Bhutanese monarch as saying.

The monarch was in India on an official visit as recently as last month.

Under the project, India and Bhutan are planning to establish a 58-km rail link between Gelephu and Kokrajhar in Assam. The initial engineering-cum-traffic survey for the Kokrajhar-Gelephu link has already been carried out by the Indian Railways, as per the ET report.

In August, External Affairs Minister S Jaishankar had hinted at the ongoing talks between India and Bhutan on the railway connection. “We are currently in negotiations for a railway link between Bhutan and Assam. Bhutan is keen to open more avenues for tourism, and this endeavour promises to benefit Assam significantly. The proposed railway link between Gelephu and Kokrajhar, situated on the Assam border, could be a game-changer, promoting both trade and tourism,” he said at the time, as per ANI. 

Another 18-km rail link between Bhutan’s Samtse and Banarhat in West Bengal is also being considered between the two countries, as per the ET report.

India and Bhutan have agreed to enhance the land customs station in Assam’s Dadgiri into an integrated check post, along with designating Darranga in Assam and Samdrup Jongkhar in Bhutan as the sites for immigration check posts, the report added.

India has reportedly okayed the transportation of Bhutanese products from Haldibari in West Bengal to Bangladesh’s Chilahati.

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Why is the Gelephu project important?

The project will attract “quality investment” from “specially screened” international companies. It is likely to bring considerable benefits to Bhutan, necessitating key investments in public infrastructure such as roads, bridges, and airports, reported The Bhutanese newspaper.

The primamry goals of the initiative is to attract investments, boost trade and create jobs, according to King Jigme Wangchuck.

The project is expected to generate economic opportunities for domestic Bhutanese as well as those in abroad. It is aimed at creating opportunities for the private sector, and facilitating demand for goods and services.

Gelephu is being positioned as a “gateway connecting Bhutan to the world and shaping the nation’s future,” as per ANI. 

“This is an inflection point, a moment in history that is very important for us,” the Bhutanese King said on Sunday.

With inputs from agencies