Phase-I of Gujarat's GIFT City project achieves financial closure

Written by Avinash Nair | Ahmedabad | Updated: Jun 3 2014, 19:27pm hrs
Narendra ModiNarendra Modi's pet project, GIFT City project has achieved financial closure for its Phase-I. Image Courtesy: Reuters
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.

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 1157 crore and balance Rs 661 crore by equity and internal accruals over the next three years, stated an official release here on Tuesday.

The debt requirement for developing Phase-I infrastructure of GIFT City of Rs 1157 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.

The funds will be utilized 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 Indias only International Financial Services Centre (IFSC), GIFT City is rapidly emerging as favored 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.

Letter of Allotments for various key facilities coming up at GIFT City like, World Trade Centre (WTC), SBI Commercial Tower, Tier IV Data Centre, Skill Development & Training Centre and an Outsourcing Centre for foreign markets in GIFT SEZ were handed over by Narendra Modi during a National Summit on Financial Services organized at GIFT City recently, stated the release.

Allotments for ICSE School, Five Star Hotel, Business Club and Hospital have already been made earlier, while company has also made allotment for development of around 500 residential units recently.