Local developers have no share in GIFT Ahmedabad pie

Monday, 20 January 2014 - 12:55pm IST | Place: Ahmedabad | Agency: DNA

The state government claims to be promoting local developers to develop Gujarat International Financial Tech-City (GIFT-City). But, tenders floated by the government belie that claim. There, it is clearly stated that developers must have the experience of constructing an 80-metre-tall building, which automatically pushes local developers out of the competition.

The GIFT-City management held a pre-bid meeting with local and national developers to encourage the latter to participate in bids to be invited for residential and commercial space in GIFT-City.

But, promoters were disappointed to know that they needed the experience of constructing buildings 80-metre tall. “The government of Gujarat does not give permission to construct 80-metre-tall buildings in the state. So, how can they expect local realtors to have such an experience,” wondered a developer who attended the meeting.

Ramakant Jha, managing director and group CEO of GIFT-City, said since the project is slated to come up in a high seismic zone, developers must have the experience of constructing taller buildings.

“If developers do not have the experience, it will be difficult for them to build such tall structures,” said Jha, adding that a developer could go for a joint venture with another developer or hire contractors having the same experience.

Such relaxations may not be of any use to local developers. “A majority of the local developers carry out constructions on their own. If they rope in national contractors, cost of construction goes up by Rs300 to Rs400,” said another developer.

The government has decided that only 5% of residential space in the GIFT-City could be sold to customers working outside it with the aim of promoting walk-to-work culture.

But the developers want the government to allow the sale of more space to other customers.

“Such conditions will not only affect their working capital requirement but also make the project less viable,” felt a developer.

“If the government is planning to bring metro rail to GIFT-City so that people can come to work from Ahmedabad and Gandhinagar, why can’t they allow more people to go out for work,” he asked.

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