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The Glimpse Of Expenditure For Smart City Project

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The glimpse of expenditure on infrastructure required for smart city project is reflected in concept of GIFT city between Ahmadabad and Gandhinagar. Gujarat International Finance Tec-city Ltd (GIFTL) was formed in 2007 to develop the city as a financial CBD. The project has been revived after eight years. Demand for financial services in India has seen a tremendous transformation over two decades. Financial service sector employs about 4 million people and generates approximately 5 per cent of GDP. It is estimated that if India can build an international financial centre with relevant rules and regulations, earnings out of financial service exports will surpass that of IT sector. GIFT city is expected to generate five lakh direct and five…show more content…
(c) Enclaves—financial, technology, corporate enclaves and world trade centre and (d) Social facilities like schools, clubs, convention centre. The Union Budget 2016 has announced several tax sops for SEZ in the city thereby creating a difference between SEZ and domestic Tariff Area (DTA) within the city. Minimum Alternate Tax applicable to SEZ is 9% against 18.5% in DTA. There are tax waivers on foreign currency sale of equity shares, sale of units of equity oriented funds, sale of units of business trusts etc. that earns foreign exchange. The city is a deemed foreign territory expected to give a big push to foreign currency transactions under special tax regime. It has a targeted market capitalisation of $ 1800 billion by 2020. Several banks like the State Bank of India, ICICI Bank, HDFC Bank, Bank of India, Yes Bank and other financial institutions have already started operations. It has sold 12 million square feet in phase I and hopes to create and sell another 22 million square feet in phase II. The SEZ will enjoy all the financial benefits enjoyed by the manufacturing SEZ.
Phase I of the project, costing Rs. 1818 crore has been funded with a debt of Rs. 1157 crore from banks at 11.5 per cent rate of interest, which is lower than usual charge of 12 per cent. The rest of the money has come from equity (Rs. 65 crore) and internal accrual (Rs. 596 crore). Land development
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