New Delhi: Finance Minister Nirmala Sitharaman Saturday cleared three crucial projects worth Rs 500 crores for development of International Financial Services Centre (IFSC) located in GIFT City in Gandhinagar, Gujarat into a global financial hub.
Sitharaman, who took a delegation of two ministers of state for finance, Pankaj Chaudhary and Bhagwat Kishanrao Karad and seven top officers from the ministry of finance, and ministry of corporate affairs, held a series of meeting with top officials both from the Centre and the State, and industry leaders among others.
Officials said the delegation engaged in discussions on matters of development and growth of India’s maiden IFSC at GIFT City, Gandhinagar.
Nirmala Sithraman also announced during the event that the Department of Economic Affairs had just last week approved three key proposals of the International Financial Services Centre Authority (IFSCA).
Three proposals for GIFT City
These proposals included approval of Rs 200 for the headquarters building of the IFSCA. Half of this amount will be given as a grant and remaining Rs 100 crore will be in the form of loan from the government.
The government also cleared a second Rs 269 crore proposal for the development of IT infrastructure at the international financial centre while the third proposal of Rs 45.75 crore is about IFSCA FinTech Scheme.
Sitharaman said the government was trying to make India a global financial gateway through GIFT-IFSC located in Gujarat.
According to officials, a couple of interactive sessions on capital markets and banking and insurance were organized and two presentations, one by MD & CEO of the GIFT City and another one by the Chairman of the IFSCA, were made before the finance minister.
GIFT City International Financial Services Centre
After assuming charge in May 2014, Prime Minister Narendra Modi started working on his favourite projects, which included a bullet train between Mumbai and Ahmedabad and establishment of a world-class financial services centre in Gandhinagar, Gujarat on the lines of financial centres of London, New York, Dubai and Singapore.
Establishment of a world class financial services centre in India was considered essential for mobilizing billions of dollars of foreign capital for development of the country’s infrastructure which includes railways, highways, waterways, ports and airports among others.
The presentations made by the officials covered all aspects of the journey of GIFT-IFSC and how to further raise the stature of GIFT-City financial services centre on the lines of Singapore and Dubai.
GIFT City Bullion Exchange
Sitharaman visited the Automated Waste Collection System (AWCS), the Underground Utility Tunnel, the Bullion vaulting Facility as well as India INX.
Sitharaman also reviewed a presentation made by the NSE IFSC, India INX and IFSCA on the proposed International Bullion Exchange at GIFT IFSC given the high demand for gold in India.
Sitharaman said that the bullion exchange was expected to come into play soon for which all the necessary infrastructure inclusive of safe vault facilities are built and operational.
Sitharaman asked the officials to get more companies listed at the GIFT IFSC. She also asked them to find ways so that the companies can raise more funds. FM also asked them to find a way to improve, deepen and widen the bond market activities at the GIFT IFSC.
She also urged the state government to support the fintech startup eco-system at GIFT City.
