Gautam Adani with Jigme Khesar Namgyel Wangchuck of Bhutan.
Credit: X/@gautam_adani
Billionaire Gautam Adani is among those in discussions for infrastructure projects in Bhutan’s new ‘Gelephu Mindfulness City’ as the tiny Himalayan kingdom seeks investment to build a mega township along its southern border with India.
The Adani Group, controlled by Asia’s second-richest person, is one of the business houses in talks with the government “at the highest levels” to set up solar and hydroelectric plants in Bhutan’s 1,000-square-kilometer (386 square miles) flatlands where the new city is being built, Lotay Tshering, Gelephu’s newly-appointed governor, said in an interview.
While the mountainous country has a population of less than 800,000, its mission to revamp its infrastructure creates another opportunity for the ports-to-power conglomerate that has been investing billions in its green energy initiatives.
Bhutan has been a strategic and long-time ally for India, which is keen to curb China’s influence in its neighborhood.
The foray, if it materializes, fits with the broader strategy of Adani’s sprawling empire of expanding its international footprint. The Indian conglomerate is already developing infrastructure projects or vying for them in Israel, Kenya, Tanzania, Sri Lanka, Bangladesh and Vietnam.
A few hundred sites have been identified for renewable energy projects that are expected to add 20 gigawatts in capacity, said Tshering, who used to be the country’s Prime Minister until 2023. Contracts for roads and bridges will also come up later as part of Gelephu’s development plan.
Airport, Dry Port
Discussions are also underway for building a large international airport that is still in the design stage and a “dry port” — an inland port connected by rail or road to a seaport — he said, outlining projects which have drawn interest from Adani Ports and Special Economic Zone Ltd. The province currently has a tiny airstrip servicing a single turboprop aircraft.
A representative for the Adani Group declined to comment on their interest in projects coming up in Bhutan.
Honoured to meet His Majesty King Jigme Khesar Namgyel Wangchuck of Bhutan. Inspired by his vision for Bhutan and the ambitious ecofriendly masterplan for Gelephu Mindfulness City, including large computing centers and data facilities. Excited to collaborate on these… pic.twitter.com/YlTNJEZwfD
— Gautam Adani (@gautam_adani) June 16, 2024
The conglomerate has often dovetailed its corporate strategy to the Indian government’s policy priorities, which include countering the sway China has in many developing countries through its massive investments.
The talks are underway with multiple investors and nothing has been finalized, Tshering said, adding that construction in Gelephu will likely start in the April to June quarter.
A smaller business group led by Anil Ambani, has already announced a tie-up to develop solar and hydro energy plants in the country.
The under-development Gelephu region will deploy artificial intelligence technologies and rely on non-fossil fuel energy as Bhutan’s monarch, King Jigme Khesar Namgyel Wangchuk, seeks to transform this sleepy southern province into an economic hub.
Hobeng Lim, a digital financial assets and regulatory veteran from Singapore, has been named managing director of finance at the Gelephu Mindfulness City.