GIFT to invest Rs 2,000 crore in a year for infrastructure
Gujarat International Finance-Tech City, the upcoming International Financial Services Centreat Gandhinagar will invest close to Rs 2000 crore in one year to set up infrastructure, an official said.
Gujarat government is planning to hardsell GIFT to the companies in the financial sector from the country and abroad during the upcoming Vibrant Summit. One of its tower will be inaugurated on January 10 and will be showcased during the summit. This will also attract foreign universities to start courses in GIFT .
In pics: Narendra Modi's Rs 78,000 cr hi-tech city GIFT
At present, Gujarat government has invested Rs 300 crore for crore by Gujarat government and Rs 800 crore by Infrastructure Lease and Finance Limited (IL&FS), which is a partner in the project. The second tower will be ready by March this year and operations in GIFT will begin in May this year. Four more towers will be ready in a year. India International Textile Machinery Exhibition (ITME) society is also coming with a exhibition-cum-convention centre. All these projects and associated infrastructure is expected to cost another Rs 2,000 crore.
GIFT officials told ET that as of now road, sewerage, water supply and power facilities are ready for the two towers. The Optical Fibre Cable (OFC) is also laid, while the work on district cooling system, automated waste collection system and water treatment plants is going on.
The 29-storey, the tallest in Gujarat, that will be ready on January 10 by chief minister Narendra Modi and will be showcased to the investors during the Vibrant Gujarat Global Summit 2013, that is organized at Mahatma Mandir in Gandhinagar during January 11-13.
GIFT officials are in talks with public sector banks, international banks like International Monetory Fund and World Bank as well as foreign banks. "Negotiations are on with PSU banks for booking space in GIFT. About 10 of them are eager to start operations here, but they need an approval from their board. We will start negotiations with private banks later on," GIFT director Ramakant Jha told ET. Talks are also on with Multi Commodiy Exchange (MCX) and National Stock Exchange (NSE).
GIFT got the status of International Financial Service Centre (IFSC) in December 2011, which resulted in a liberalized financial regime, enabling banks and other financial institutions to conduct business in foreign currencies. A part of GIFT is also recognized as a Special Economic Zone (SEZ) granting the companies here immunity from central and state taxes. In absence of an IFSC in India, financial transactions worth $80 billion are estimated to have been conducted by companies in India from similar centres abroad.
GIFT officials believe that an operational IFSC in India will enable a significant chunk of this business to take place from GIFT. "We expect the cost of operation from GIFT to be about 90% less than its peers abroad. This will help us attract business from even foreign companies operating from similar centres abroad," Jha told ET. Gujarat government plans to hardsell the project during the Vibrant Gujarat Summit 2013.
At a time when GIFT planners and the Gujarat government are hopeful of attracting foreign and domestic companies, they are also trying to woo local and foreign universities to prepare skilled manpower for the investing companies. Local universities like Gujarat Technical University (GTU), Nirma University as well as foreign universities will be started post graduate courses in the GIFT city itself. A banking institute within GIFT is also on cards. GIFT will also have a match making facility for the companies and students as well as an incubation centre for students with innovative projects and willing to persue entrepreneurship.
GIFT got the status of International Financial Service Centre (IFSC) in December 2011, which resulted in a liberalized financial regime, enabling banks and other financial institutions to conduct business in foreign currencies. A part of GIFT is also recognized as a Special Economic Zone (SEZ) granting the companies here immunity from central and state taxes. In absence of an IFSC in India, financial transactions worth $80 billion are estimated to have been conducted by companies in India from similar centres abroad.
GIFT officials believe that an operational IFSC in India will enable a significant chunk of this business to take place from GIFT. "We expect the cost of operation from GIFT to be about 90% less than its peers abroad. This will help us attract business from even foreign companies operating from similar centres abroad," Jha told ET. Gujarat government plans to hardsell the project during the Vibrant Gujarat Summit 2013.
At a time when GIFT planners and the Gujarat government are hopeful of attracting foreign and domestic companies, they are also trying to woo local and foreign universities to prepare skilled manpower for the investing companies. Local universities like Gujarat Technical University (GTU), Nirma University as well as foreign universities will be started post graduate courses in the GIFT city itself. A banking institute within GIFT is also on cards. GIFT will also have a match making facility for the companies and students as well as an incubation centre for students with innovative projects and willing to persue entrepreneurship.
Gujarat International Finance-Tech City, the upcoming International Financial Services Centreat Gandhinagar will invest close to Rs 2000 crore in one year to set up infrastructure, an official said.
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Gujarat government is planning to hardsell GIFT to the companies in the financial sector from the country and abroad during the upcoming Vibrant Summit. One of its tower will be inaugurated on January 10 and will be showcased during the summit. This will also attract foreign universities to start courses in GIFT .
In pics: Narendra Modi's Rs 78,000 cr hi-tech city GIFT
At present, Gujarat government has invested Rs 300 crore for crore by Gujarat government and Rs 800 crore by Infrastructure Lease and Finance Limited (IL&FS), which is a partner in the project. The second tower will be ready by March this year and operations in GIFT will begin in May this year. Four more towers will be ready in a year. India International Textile Machinery Exhibition (ITME) society is also coming with a exhibition-cum-convention centre. All these projects and associated infrastructure is expected to cost another Rs 2,000 crore.
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GIFT officials told ET that as of now road, sewerage, water supply and power facilities are ready for the two towers. The Optical Fibre Cable (OFC) is also laid, while the work on district cooling system, automated waste collection system and water treatment plants is going on.
The 29-storey, the tallest in Gujarat, that will be ready on January 10 by chief minister Narendra Modi and will be showcased to the investors during the Vibrant Gujarat Global Summit 2013, that is organized at Mahatma Mandir in Gandhinagar during January 11-13.
GIFT officials are in talks with public sector banks, international banks like International Monetory Fund and World Bank as well as foreign banks. "Negotiations are on with PSU banks for booking space in GIFT. About 10 of them are eager to start operations here, but they need an approval from their board. We will start negotiations with private banks later on," GIFT director Ramakant Jha told ET. Talks are also on with Multi Commodiy Exchange (MCX) and National Stock Exchange (NSE).
GIFT officials are wooing financial institions from Singapore, Tokyo Stock Exchange and New York Stock Exchange to start their operations here. The World Bank and International Monetory Fund are also consideringGIFT for future operations.
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GIFT got the status of International Financial Service Centre (IFSC) in December 2011, which resulted in a liberalized financial regime, enabling banks and other financial institutions to conduct business in foreign currencies. A part of GIFT is also recognized as a Special Economic Zone (SEZ) granting the companies here immunity from central and state taxes. In absence of an IFSC in India, financial transactions worth $80 billion are estimated to have been conducted by companies in India from similar centres abroad.
GIFT officials believe that an operational IFSC in India will enable a significant chunk of this business to take place from GIFT. "We expect the cost of operation from GIFT to be about 90% less than its peers abroad. This will help us attract business from even foreign companies operating from similar centres abroad," Jha told ET. Gujarat government plans to hardsell the project during the Vibrant Gujarat Summit 2013.
At a time when GIFT planners and the Gujarat government are hopeful of attracting foreign and domestic companies, they are also trying to woo local and foreign universities to prepare skilled manpower for the investing companies. Local universities like Gujarat Technical University (GTU), Nirma University as well as foreign universities will be started post graduate courses in the GIFT city itself. A banking institute within GIFT is also on cards. GIFT will also have a match making facility for the companies and students as well as an incubation centre for students with innovative projects and willing to persue entrepreneurship.
GIFT officials are wooing financial institions from Singapore, Tokyo Stock Exchange and New York Stock Exchange to start their operations here. The World Bank and International Monetory Fund are also consideringGIFT for future operations.
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GIFT got the status of International Financial Service Centre (IFSC) in December 2011, which resulted in a liberalized financial regime, enabling banks and other financial institutions to conduct business in foreign currencies. A part of GIFT is also recognized as a Special Economic Zone (SEZ) granting the companies here immunity from central and state taxes. In absence of an IFSC in India, financial transactions worth $80 billion are estimated to have been conducted by companies in India from similar centres abroad.
GIFT officials believe that an operational IFSC in India will enable a significant chunk of this business to take place from GIFT. "We expect the cost of operation from GIFT to be about 90% less than its peers abroad. This will help us attract business from even foreign companies operating from similar centres abroad," Jha told ET. Gujarat government plans to hardsell the project during the Vibrant Gujarat Summit 2013.
At a time when GIFT planners and the Gujarat government are hopeful of attracting foreign and domestic companies, they are also trying to woo local and foreign universities to prepare skilled manpower for the investing companies. Local universities like Gujarat Technical University (GTU), Nirma University as well as foreign universities will be started post graduate courses in the GIFT city itself. A banking institute within GIFT is also on cards. GIFT will also have a match making facility for the companies and students as well as an incubation centre for students with innovative projects and willing to persue entrepreneurship.
Source : HIMANSHU DARJI,ET BUREAU
