Modi’s pet project GIFT City meets financial closure of Rs 1,157 crore

The Gujarat International Finance Tec-City or GIFT City project has achieved financial closure.

By: Express News Service | Ahmedabad | Updated: June 4, 2014 5:07 am
While Rajapaksa has ordered release of all Indian fishermen in Sri Lankan custody, Pakistan today freed 151 Indian fishermen as a goodwill gesture. Prime Minister Narendra Modi

One of the pet projects of Prime Minister Narendra Modi — the Gujarat International Finance Tec-City or GIFT City project — has achieved financial closure for the first phase of infrastructure development. This project is the state’s first International Financial Services Centre (IFSC) that is being developed as an alternate to similar centres in Mumbai, London, Tokyo and others.

The estimated cost of various infrastructure in Phase-I of the project is Rs 1818 crore. This cost is to be funded by debt of Rs 1,157 crore and balance Rs 661 crore by equity and internal accruals over the next three years, stated an official release from the Gujarat International Finance Tech-City Company, here on Tuesday.

The debt requirement for developing Phase-I infrastructure of GIFT City of Rs 1,157 crore has been tied up with consortium of five banks led by Syndicate Bank. The other consortium banks are Bank of India, Bank of Baroda, Punjab & Sindh Bank and Corporation Bank.

“We have a moratorium of three years on the debt amount and we will have to repay it within a period of eight years,” said Dipesh Shah, vice-president, business development, GIFT City while talking about the closure that was achieved on May 20 this year.

The funds will be utilised for developing the state-of-the-art infrastructure planned for the city which includes Road Network, District Cooling System, Automated Solid Waste Management system, Utility Tunnel, Smart ICT, Master Balancing Reservoir, Water and Sewerage treatment plant, Power distribution system and other infrastructure components.

The implementation of these infrastructure components is under progress. Reputed international agencies like ETA Engineering of Dubai is implementing the District Cooling system and Sweden based Envac is developing the Automated waste collection system in the city.

Being developed as India’s only International Financial Services Centre (IFSC), GIFT City is rapidly emerging as favoured destination amongst Financial Institutions for setting up their operations. Allotment of 10.6 million square feet of built-up area has already been made for development of Commercial, Residential and Social facilities.

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