GIDC may hand IT hub development to Gift City

The Gujarat Industrial Development Corporation (GIDC) is contemplating transferring the development of the proposed IT hub in Gift City to the Gift City authority. The project, which was planned prior to the pandemic, has faced delays and now GIDC is expected to hand over the project to Gift City for development. There are reports suggesting that GIDC may relinquish the development rights to Gift City, but the final decision lies with the state government.

Previously, Gift City had allotted GIDC the development rights for a 600,000 square foot built-up area at a rate of Rs 850 per square foot. The project was initiated by the state government in response to a request from the Gujarat Electronics and Software Industries Association (Gesia) to create infrastructure for a new IT hub in 2019. However, the project was put on hold due to the pandemic. After consulting with Gesia and private IT companies, GIDC decided to resume the project at a cost of Rs 405 crore. Gesia had received expressions of interest from around 38 companies, and it was estimated that the project could generate approximately 9,000 jobs with an investment of around Rs 1,000 crore from the industry.

The original plan by GIDC was to develop a 28-floor building with a ground floor that would accommodate IT companies under one roof, along with shared infrastructure. GIDC also intended to create co-working spaces in the building to meet the growing demand for such workspaces.

A senior GIDC official, speaking on condition of anonymity, stated, “The tendering process was carried out twice, but the prices did not align, resulting in cancellations. Since GIDC lacks experience in vertical development, we are considering involving the Gift City authority in the project. The state government is discussing the matter, and a decision is expected soon.”

A senior member of Gesia stressed the importance of expeditiously developing the project, highlighting the emergence of Gift City as a global fintech hub, particularly after Google’s announcement to establish a presence there. “The IT sector has undergone significant changes due to the Covid-19 pandemic, with companies favoring managed offices over dedicated spaces,” the member stated.