22.8.11

GIFT gets SEZ status

The languishing Gujarat International Financial Tech-City (GIFT), which is being developed off Gandhinagar, is finally a special economic zone (SEZ). The Centre has given the much-awaited nod for the SEZ status which was critical for the project touted to have the potential to take on not only the economic might of Mumbai but also Asian regional financial hubs like Dubai and Hong Kong. On August 18, there was some relief in Gandhinagar as the Gujarat government was officially informed about SEZ clearance. The go-ahead was given by Union ministries of finance and commerce. This makes GIFT the country’s first multi-service SEZ with special focus on financial services, riding on immense skills that Gujaratis possess in this area. Investors, who were shying away from GIFT so far, are happy over the SEZ status as international players will be able to set up base here without Reserve Bank of India restrictions on capital. Plus, domestic financial players will be able to operate out of here and offer financial services across the world. Only part of GIFT will be a SEZ, giving the option to investors to enjoy freedom from fiscal control or to be bound by Indian regulators. Director for GIFT Ramakant Jha, the man behind many infrastructural projects in Mumbai, said by mid-September GIFT Company Ltd will roll out the red carpet for Indian and global developers for two commercial buildings in the SEZ area, besides one residential and commercial building each in the non-SEZ area. The four buildings will have over two million sq. ft. of office space. While the project got slowed down by the global financial meltdown, it was only in March GIFT Company Ltd became the official owners of a large tract of land in Shahpur, off Gandhinagar. Chief minister Narendra Modi was keen on this land transfer as the government had barely managed six MoUs for investments in GIFT. He may also relax the state’s dry laws for this zone. “Now, many investors will be willing to join us from the banking, insurance, and IT enabled services,” says Jha. The six earlier MoUs are worth Rs 11,700 crore. IL&FS will begin building towers with a total carpet area of 7.77 million square feet. The company shall pump in investments worth Rs 3,000 crore for this purpose. The land for GIFT city is divided into two portions today. Nearly 261 acres will come under the SEZ area and 412 acres outside SEZ limits as on date. The GIFT City project is spread over 886 acres out of which 673 acres have already been transferred by the state government to GIFT Company Ltd. Sources add that the process to acquire the remaining portion of land is under way.Gujarat will get its first 30-floor commercial building and a 22-floor residential building in the next two-and-half years at Gujarat International Financial Tec (GIFT) City, off Gandhinagar. Moreover, a fully functional clubhouse with recreational facilities and 50 rooms will be completed in the next 18 months. In May 2010, the Airports Authority of India (AAI) had cleared the height of 120 metres for GIFT City buildings. GIFT City’s new SEZ status has only catalyzed works of civic and social infrastructure at the project site. Investors, mainly from Dubai’s construction companies, have already started making enquiries. “To facilitate investors, GIFT City will extend concessions to financial regulators so that they can set up shop here,” said a senior official of GIFT Company Ltd. “This means investors won’t have to go to Mumbai to get basic clearances from RBI or other financial regulators in the western region.” The master plan for GIFT City, which covers 886 acres, consists of 67% commercial area; 22% residential; and 11% is set aside for social infrastructure. The city has laid a special emphasis on creating social infrastructure first. A GIFT official pointed out that in the first phase of the project, which covers an area of 10 million square feet, there will be provisions for two schools, up to the senior secondary levels. One will be affiliated to the Central Board of Secondary Education (CBSE), and the other to International Baccalaureate. IL&FS will dedicate 10 floors for special courses that will be required for professional skill development. This includes two-year vocational courses. Another GIFT Company Limited official said it is wrongly believed that electricity will be costlier in GIFT SEZ. He said the company will actually offer power at a rate lower than what is prevalent in the rest of the state. “We have already commissioned work to a developer to set up power infrastructure at GIFT City,” said vice-president, corporate services and business development, Dipesh Shah. “The Uttar Gujarat Vij Company Limited has given us clearances.” GIFT Company director Ramakant Jha said: “If you do not create basic social it is hard to persuade anyone to move into the city.”

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