Post-first phase of GIFT,IPO possible

“We expect the first phase development of GIFT encompassing 10 million square feet of commercial space at an investment of Rs 4,500 crore to get over in next three years,” GIFT Company Ltd Chairman Sudhir Mankad told newsmen.

“In later stages,the possibility of IPO route for fund raising cannot be ruled out,” he said.

A target of constructing close to 22 million sq ft and 30 million sq ft of commercial space in phase-II and III respectively has been fixed.

The project that aims to catapult Gujarat into the global league is being developed by Gujarat International Finance Tec-City Company Ltd,a 50:50 joint venture between the state-run Gujarat Urban Development Company (GUDC) and Infrastructure Leasing and Financial Services (IL&FS).

“The first anchor investor to the project,IL&FS,

which is also our joint venture partner,has underwritten for constructing 7 million sq ft of commercial space,” Mankad said.

“Its contractor Larsen and Toubro has begun the construction of first tower of 13 floors,assuring 5 million square feet of space,while the mandate for constructing the second tower has been given to an another company,” Mankad said.

“Both the towers are expected to be ready for occupation possibly by 2012,” he said adding that around 12 towers are proposed to be constructed in the first phase of development.

GIFT,so far has spent over Rs 200 crore to get the pre-feasibility studies conducted for the multi-crore project.

The Institute of Seismological Research has conducted the seismic study for the project. It has also submitted its recommendations for constructing India’s tallest building which will be 400 metre high in GIFT city,a Diamond tower. A total of 103 buildings are proposed to come up in GIFT City,which is being developed along the banks of Sabarmati river in Gandhinagar.

The project has been conferred a multi-product SEZ status by the Centre.

“The SEZ is expected to attract USD 3.8 billion investment and is targeting exports worth USD 1 billion,when the first phase becomes operational,” sources said.

GIFT,which is expected to change India’s financial skyline by creating new benchmarks in investments,exports and job creation.

“GIFT is expected to generate revenues of Rs 4,000 crore annually over next ten years for the state government,and over Rs 8,000 crore per annum for same period for the centre,” a GIFT official said.

The project will create one million direct and indirect jobs,he said.