Gelephu Special Administrative Region

Gelephu Special Administrative Region (stylized as GeSAR), also known as Gelephu Mindfulness City (GMC SAR) (Dzongkha: དགེ་ལེགས་ཕུག་དྲན་ཤེས་ཁྲོམ་ཚོགས) and Sarpang District Special Economic Zone (SD SAR),^[1][2] is a planned economic hub and special administrative region in Gelephu in Bhutan, separate from Bhutan's existing laws. Strategically located on the border with India to leverage regional connectivity betweem South Asia and South East Asia, it will cover an area of 2,500 square kilometers three times the size of Singapore.^[1] The city will have its own business-friendly regulations and systems, integrating sustainability, Bhutanese culture, and spirituality with plastic-free, modern, urban, low-rise, eco-friendly buildings. The aim is to create a clean technology innovation hub by attracting global investment to boost economic activity. It will host Asia's first fully "Digital Reserve Bank" named "Oro" with the digital currency named "Ter". All food will be from organic sources, electricity from renewable sources, built to promote cycling, and foster AI innovation.^[3] GMC SAR will have seven key economic clusters, Spirituality, Health and Wellness, Education and Knowledge, Green Energy and Tech, Finance and Digital Assets, Agri-Tech and Forestry, Aviation and Logistics.^[4]

Gelephu Special Administrative Region
Country	Bhutan
Region	Gelephu
Government
• Type	Special Administrative Region with its own Basic Law
Area
• Total	2,500 km2 (1,000 sq mi)
Website	https://gmc.bt

King Jigme Khesar Namgyel Wangchuck of Bhutan announced the plan for the GMC SAR in a public Royal Address during the 116th National Day celebration on December 17, 2023.^[5]

History

Gelephu was formerly a Lhotshampa town. The Lhotshampa were ethnically cleansed by the King of Bhutan in the 1990s and currently reside in refugee camps in Nepal.^[6] Their political leaders were tortured.^[7]

For several years, the King of Bhutan has planned the development of the Gelephu Mindfulness City (GMC) as a Special Administrative Region (SAR) with its own distinct laws and systems, with initial development to be driven by Foreign Direct Investment.^[1][2] Unveiled as part of Bhutan’s broader strategy to diversify its economy and create opportunities for its youth, GMC emphasizes Bhutan’s cultural identity while integrating modern technologies and sustainable practices. Its development gained prominence at the Bhutan Innovation Forum in 2024,^[8] where it received endorsement from Nobel laureates Joseph Stiglitz and Michael Spence, architect Bjarke Ingels, and Snap Inc. CEO Evan Spiegel.

Seven economic clusters of GMC

Gelephu Mindfulness City, aiming to foster innovation and economic development while maintaining Bhutan’s commitment to mindfulness and environmental sustainability, will be organized around seven key economic clusters:^[4]

• Spirituality: Promoting mindfulness and Bhutanese cultural heritage.
• Health and Wellness: Establishing GMC as a global destination for holistic health.
• Education and Knowledge: Creating a “City of Mindful Learning” with world-class educational institutions.
• Green Energy and Tech: Leveraging Bhutan’s renewable energy potential to foster innovation.
• Finance and Digital Assets: Launching the blockchain-backed digital currency TER, aimed at promoting transparent and secure financial transactions.
• Agri-Tech and Forestry: Enhancing food security and sustainable agriculture practices.
• Aviation and Logistics: Developing the Gelephu International Airport as a regional hub.

The city seeks to address critical challenges like youth unemployment and urban migration, while promoting renewable energy, ethical investments, and mindful living.

MGC Autonomous Region's governance

GMC operates as an autonomous administrative region with independent executive, legislative, and judicial systems. The governance framework prioritizes transparency and accountability, ensuring a business-friendly environment while promoting mindfulness and sustainability.^[9] The project is led by prominent figures, including Mun Leong Liew as CEO and Dasho Dr. Lotay Tshering as Governor. The Board of Directors comprises experts in investment, infrastructure, education, and technology, guided by His Majesty the King as Chairman. The Gelephu Mindfulness City Authority (GMCA) enacted the first law receiving Royal assent from His Majesty the King on 26 December 2024, adopting 18 Singaporean laws as its primary legal framework and 10 Abu Dhabi Global Market Financial regulations to govern company law, taxation and financial services.^[10][11] The city’s financial ecosystem is intended to be modeled on international best practices, incorporating stringent KYC (Know Your Customer) regulations and anti-corruption protocols.

Environmental Sustainability

GMC is claimed to exemplify Bhutan’s philosophy of “Building with Nature.” The city integrates renewable energy sources, preserves biodiversity, and promotes low-impact urban living. Infrastructure projects, including the airport and advanced digital networks, will be powered entirely by green energy.

Regional connectivity

See also: Transport in Bhutan, Rail transport in Bhutan, and Neighbourhood First Policy of India

The construction of a 58 km long Gelephu-Kokrajhar rail line (from Gelephu in Bhutan to Kokrajhar city of Assam state in India) and the upgrading of Gelephu Airport from domestic to an international airport commencing around the July-August 2024 are being planned. These initiatives were discussed between the Monarch of Bhutan and India's Prime Minister Narendra Modi.^[1][2]

See also

• Great Nicobar Island Development Project, SAR in India
• Dawei Port Project, SAR in Myanmar