GIFT City

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GIFT City
City
Gujarat International Finance-Tec City
Night view of Gift City
Night view of Gift City
Official logo of GIFT City
GIFT City is located in Gujarat
GIFT City
GIFT City
Location in Gujarat, India
GIFT City is located in India
GIFT City
GIFT City
GIFT City (India)
Coordinates: 23°09′35″N 72°41′04″E / 23.159626°N 72.684512°E / 23.159626; 72.684512Coordinates: 23°09′35″N 72°41′04″E / 23.159626°N 72.684512°E / 23.159626; 72.684512
Country India
StateGujarat
DistrictGandhinagar
MetroAhmedabad-Gandhinagar Metro
Government
 • BodyGujarat International Finance Tec-City Company Limited
Area
 • Total15.5 km2 (6.0 sq mi)
 • Rank3.58[1]
Languages
 • OfficialGujarati, Hindi, English
Time zoneUTC+5:30 (IST)
Telephone code+91
Vehicle registrationGJ18
Websitegiftgujarat.in

Gujarat International Finance Tec-City (GIFT City) is central business district under construction in Gandhinagar and Ahmedabad in Gandhinagar district in Gujarat, India. It is India's first operational greenfield smart city and international financial services center, which the Government of Gujarat promoted as a greenfield project.

GIFT City, an emerging global financial and IT services hub and a first-of-its-kind in India, is designed to be at or above par with globally benchmarked business districts. GIFT City presents us with a one-time opportunity to create a corporate haven “like Delware island” that while being under Indian control, can provide entrepreneurs and investors with the best of both worlds.

It will allow India-based entrepreneurs incorporate in Gift City, let them accept investments in any currency from investors around the world (barring those from defined restricted jurisdictions, e.g. neighboring countries, sanctioned countries), let them hold money in USD or INR, let Indian residents be allowed to invest freely and let them list in the NSE/BSE or on NASDAQ/HongKong or London Stock Exchanges. When entrepreneurs or employees or investors based in India make money, or companies become profitable, just set it up so that they pay their taxes in India, regardless of where they get listed themselves.

Setting up GIFT City as a hybrid location can quickly make GIFT City the preferred choice of entrepreneurs and ensure that the long-term value capture happens in India. Startups across India will be from all corners, and GIFT City can be a great common denominator, while allowing the freedom to leverage the distributed ecosystem of India. Anything domestic will still be in the form of a wholly owned subsidiary, but allow Indian AIFs or overseas investors to invest in GIFT City incorporated companies in INR or USD, pari-passu. One small but important benefit is that all the investment dollars which are currently being held in banks in the US/Singapore will also now be held in the “Indian” banking system, whether in USD or INR.

Location and implementation[edit]

The city is located on the banks of the Sabarmati River and is around 12 km (7.5 mi) from Sardar Vallabhbhai Patel International Airport.[2][3][4][5] The city is designed so residents can walk to work, and includes commercial, financial and residential complexes.

The city is connected through 4-6 lane State and National Highways. A metro station is also planned for construction, which would connect GIFT City to the Ahmedabad Metro network, and is expected to be completed by March 2024.[6][7]

The total area for the development of GIFT is 886 acres out of which the SEZ (Special Economic Zone) constitutes 261 acres. The project area under development can hence be classified under the SEZ area and the Non-SEZ area (also known as the Domestic Tariff area or the DTA).[8]

GIFT City has dedicated Multi Services Special Economic Zone (SEZ) for international operations of various services sectors players. Also within the GIFT Multi Services SEZ, GIFT houses India's first International Financial Services Center (IFSC) approved by the Government of India.[8]

For the purpose of implementation of the SEZ, GIFT Company Limited has set up an SPV (Special Purpose Vehicle) (100% subsidiary of GIFTCL) namely GIFT SEZ Ltd, designated as the developer organization of the SEZ. GIFTCL has also set up 5 subsidiary companies for the implementation of specialized infrastructure including Power, Water, ICT (Information & Communication Technology), District Cooling and solid waste management.[citation needed]

History[edit]

Prime Minister Narendra Modi in 2017 at the India International Exchange inauguration ceremony in GIFT City.[9][10]

On 15 December 2011, The Economic Times reported city officials in GIFT were inviting companies from Singapore that wished to expand but could not do so due to a lack of land in Singapore to open their businesses in GIFT. Investments from banks, private equity companies, insurance companies and asset management companies were considered.[11]

On 26 December 2011, The Times of India reported China's technology giant Huawei was likely to provide technology to GIFT. According to Eric Yu, president, enterprise business of Huawei India, this technology included networks, data centres and surveillance.[12]

On 2 October 2014, NetIndian reported a new World Trade Center would be set up in GIFT City as per an agreement between World Trade Center India Services Council (WTCS) and GIFT City Ltd. It would be completed within four years.[13]

BSE Broker's Forum planned to invest ₹120 crore to build a commercial tower to set up back-office operations. They were allocated 28,000 square metres (300,000 sq ft) to develop the commercial tower with the likelihood of setting up an exchange office.[14]

According to The Times of India on 18 October 2014, the Bangalore-based Brigade Group would invest ₹500 crore over the next few years to develop 100,000 square metres (1.1×10^6 sq ft) of built up area with a future option of investing another ₹600 crore to develop 160,000 square metres (1.7×10^6 sq ft).[15]

In November 2018, The Wire reported the Government of Gujarat State would buy out the 50% stake of beleaguered Infrastructure Leasing & Financial Services (IL&FS) in the GIFT City to minimize delays to the project.[16] In June, 2020, IL&FS concluded sale of its stake in GIFT-City for ₹32 crore equity value to the state government.[17]

According to Business Standard, OPS Fund Services, a subsidiary of OPS Global, Singapore, received a license to open in the International Financial Service Centre at GIFT city.[18]

On 5 December 2019, Business Standard reported that Bank of America opened a Global Business Services Center at GIFT.[19]

On 6 January 2020, Accor opened the first international hotel in GIFT City.[20]

On 20 January 2020, The Economic Times reported GIFT was ready to begin trading in rupee-dollar in the futures market.[21]

In July 2022, JPMorgan Chase, Deutsche Bank and Mitsubishi UFJ Financial Group opened new offices at the International Financial Services Centre.[22] Prime Minister Narendra Modi formally opened Singapore Exchange's futures trading operation "Nifty",[23] and India's first international bullion exchange was opened.[24]

Construction timeline[edit]

Utility Tunnel at GIFT City

Two 28-floor commercial towers called GIFT One and GIFT Two have been finished. Tendering for the construction of more towers is ongoing.[25] This phase will also include the building of basic infrastructure.[25] India's first city-level district cooling system (DCS) is operational at GIFT City. The first phase of this DCS, with a capacity of 10,000 Ton of refrigeration has been in operation since April 2015; it is designed to reduce the operational cost and avoid the capital cost of implementing individual air conditioners in each building.[26]

Consultants[edit]

  • Owner - The Amazing
  • Design and Architecture - East China Architectural Design & Research Institute (ECADI) and Fairwood Consultants India
  • ICT Advisory Services - British Telecom
  • Market Demand Assessment - McKinsey & Company
  • Talent Demand Assessment - Hewitt Associates
  • Environmental Assessment - IL&FS Ecosmart Ltd
  • Process Management - IL&FS Infrastructure Development Corporation Ltd
  • Power Management - ABB Group[27]

Status[edit]

As part of Phase-I development, around 780,000 square metres (8.4×10^6 sq ft) of built-up area has already been allotted from the 1,200,000 square metres (13×10^6 sq ft) available for commercial, residential and social use.[28] On 11 September 2019, Tapan Ray, managing director and Group CEO of GIFT City, said the city had attracted around ₹11,000 crore of investment.[29]

Divisions[edit]

GIFT City Divisions
Zones Area
SEZ - PA 61.1829 Ha (130.5acres)
SEZ - N PA 44.2557 Ha (130.5 acres)
TOTAL (SEZ) 105.4386 Ha (261 acres)
DTA 252.93 Ha (625 acres)
GRAND TOTAL 358.3686 Ha (886 acres)

The total area for the development of GIFT is 886 acres out of which the SEZ (Special Economic Zone) constitutes 261 acres. The project area under development can hence be classified under the SEZ area and the Non-SEZ area (also known as the Domestic Tariff area or the DTA).[8]

GIFT City has dedicated Multi Services Special Economic Zone (SEZ) for international operations of various services sectors players. Also within the GIFT Multi Services SEZ, GIFT houses India's first International Financial Services Center (IFSC) approved by the Government of India.[8]

Administration[edit]

Gujarat International Finance Tec-City Company Limited[edit]

The Government of Gujarat formed "Gujarat International Finance Tec-City Company Limited" (GIFTCL) to develop and implement GIFT City through its venture Gujarat Urban Development Company Limited (GUDCL). GIFT City is an 886-acre integrated project that creates 62 million square feet of built-up area, including 67% commercial space, 22% residential space and 11% community space.

GIFT Managing Bodies[edit]

For the purpose of implementation of the SEZ, GIFT Company Limited has set up an SPV (Special Purpose Vehicle) (100% subsidiary of GIFTCL) namely GIFT SEZ Ltd, designated as the developer organization of the SEZ. GIFTCL has also set up 5 subsidiary companies for the implementation of specialized infrastructure including Power, Water, ICT (Information & Communication Technology), District Cooling and solid waste management.[30]

  • Gift Power Company Limited
  • Gift Waste Management Services Limited
  • Gift Water Infrastructure Limited
  • Gift ICT Services Limited
  • Gift Collective Investment Management Company Limited
  • Gift SEZ Limited

References[edit]

  1. ^ "Gujarat International Finance Tec-City - Global Financial Hub | GIFT Gujarat". Giftgujarat.in. Retrieved 3 January 2017.
  2. ^ "THE GUJARAT INTERNATIONAL FINANCE TEC-CITY (GIFT)". www.gudcltd.com. Retrieved 2 February 2018.
  3. ^ "GIFT makes steady progress; witnesses a 'hockey stick growth curve'". www.businesstoday.in. Retrieved 1 November 2018.
  4. ^ Subramanian, N. Sundaresha (1 February 2018). "More gifts for GIFT City may stop flight of capital to Singapore". The Economic Times. Retrieved 2 February 2018.
  5. ^ "Developments of Ahmedabad". Archived from the original on 31 December 2019. Retrieved 14 September 2018.
  6. ^ "Gujarat International Finance Tec-City to have its own metro stations". The Times of India. Archived from the original on 5 November 2013. Retrieved 3 January 2017.
  7. ^ "Ahmedabad- Metro Rail: Work on phase 2 of the project to begin in June 2020; details". The Financial Express. 18 November 2019. Retrieved 23 January 2020.
  8. ^ a b c d Rodrigues, Jeanette; Sircar, Subhadip (29 November 2022). "India's Free-Market Oasis Aims to Take On Singapore and Dubai". Bloomberg News. Retrieved 29 November 2022.
  9. ^ "PM Modi to inaugurate 16-storey international exchange in Gujarat to rival Singapore, Dubai". India Times. Indo-Asian News Service. 9 January 2017. Retrieved 16 January 2017.
  10. ^ "PM Narendra Modi launches India's first international stock exchange". India Today. 13 January 2017. Retrieved 16 January 2017.
  11. ^ "Singapore firms get Gujarat International Finance Tec City (GIFT) invite - The Economic Times". Articles.economictimes.indiatimes.com. 15 December 2011. Retrieved 3 January 2017.
  12. ^ "China's Huawei to provide tech for GIFT". The Times of India. Archived from the original on 16 January 2012. Retrieved 3 January 2017.
  13. ^ "GIFT City, GCCI and World Trade Centre in pact for trade development | NetIndian". Netindian.in. 2 October 2014. Retrieved 3 January 2017.
  14. ^ "BSE to set up commercial tower at GIFT city in Gujarat | Latest News & Updates at Daily News & Analysis". Dnaindia.com. 15 October 2014. Retrieved 3 January 2017.
  15. ^ "Brigade Group to invest Rs 500 crore in GIFT City as co-developer - Times of India". Timesofindia.indiatimes.com. 18 October 2014. Retrieved 3 January 2017.
  16. ^ "Gujarat Will Buy Crisis-Hit IL&FS Stake in 'Gift City', Says CM Vijay Rupani". The Wire.
  17. ^ "IL&FS sells 50% stake in GIFT City to Gujarat govt, reduces consolidated debt by over Rs 1,200 crore". The Economic Times. 8 June 2020. Retrieved 9 June 2020.
  18. ^ Bhayani, Rajesh (14 January 2019). "Boost for AIF biz at Gift city as top fund administrator gets license" – via Business Standard.
  19. ^ Umarji, Vinay (6 December 2019). "Bank of America opens Global Business Services Center at GIFT-IFSC". Business Standard India. Retrieved 23 January 2020.
  20. ^ "Accor opens the first international hotel in GIFT City". Travel Daily. 6 January 2020. Retrieved 23 January 2020.
  21. ^ Das, Saikat (20 January 2020). "GIFT City to begin trading in rupee-dollar in futures market". The Economic Times. Retrieved 23 January 2020.
  22. ^ "The Economic Times: JPMorgan, Deutsche and MUFG's entry to give Gift City a big boost".
  23. ^ "PM to launch SGX Nifty trade at GIFT". The Economic Times.
  24. ^ "India's first international bullion exchange to be inaugurat ." The Times of India.
  25. ^ a b "India's tallest proposed building Diamond Tower showcased(Video) | DeshGujarat News from Gujarat". Deshgujarat.com. 22 January 2009. Retrieved 3 January 2017.
  26. ^ "India's First District Cooling System at GIFT City: REHVA". www.rehva.eu. Retrieved 18 February 2019.
  27. ^ "ABB will power up the world's biggest financial district". Abb.com. 13 August 2008. Retrieved 3 January 2017.
  28. ^ "News Update 2015 | VG 2015 | Vibrant Gujarat Global Summit 2017". Vibrantgujarat.com. Retrieved 3 January 2017.
  29. ^ Rishi Iyengar. "30,000 jobs in next 3 years immediate priority, says Tapan Ray, MD, Gujarat International Finance Tec-city". CNN.
  30. ^ "Developments of Ahmedabad". Archived from the original on 31 December 2019. Retrieved 14 September 2018.

External links[edit]

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