State tweaks BKC IFSC plan, awaits Centre’s approval

To keep alive its pet project, the International Financial Services Centre (IFSC) at Bandra Kurla Complex (BKC), the state has sent a revised plan of 50 hectares to the Centre. Earlier, it had sent a proposal to the Centre demarcating only 20 hectares of land for the project under the banner of a Special Economic Zone (SEZ), but it was rejected as it did not meet certain standards. The Mumbai Metropolitan Region Development Authority (MMRDA) has sent a fresh proposal of 50 hectares to the ministry of commerce.

The state had earlier urged the Centre to relax SEZ norms for BKC to accommodate vertical development, but the Centre had rejected the proposal of 20 hectares citing minimum requirement of 50 hectares. The Centre had also raised concerns of vertical development keeping in mind the guidelines of the civil aviation ministry since the airport is close by. The SEZ status will pave way for giving tax incentives and other benefits, including those related to duty-free imports to domestic and global investors who would like to set up their business units in the IFSC.

“We have clubbed a plot measuring 30 hectares adjacent to the 20-hectare plot. A fresh proposal regarding the same has been sent to the ministry of commerce for its approval and the same is expected soon. We have also appointed a consultant to prepare the master plan and layout of the whole IFSC. It will be ready by the second week of January,” said a senior MMRDA official.

The construction of the IFSC is already mired in controversy, as the Railways has demanded the same plot for the proposed Mumbai-Ahmedabad bullet train terminal. Following the announcement by the Railway Board that a bullet train terminal would come up at BKC, the chief minister’s office hurriedly ordered the MMRDA to float tenders for appointing design consultants for the construction of the IFSC on the 20-hectare plot.

It is also said that the IFSC in Mumbai is in competition with Prime Minister Narendra Modi’s dream project, the Gujarat International Finance Tec-City (GIFT), in Ahmedabad.