Guj govt likely to take over Sabarmati Riverfront development entity

The Gujarat government is likely to take over the Sabarmati Riverfront Development Corporation Limited (SRFDCL), which is currently run by the Amdavad Municipal Corporation (AMC), amid plans for the next phase of the riverfront project, sources said.

The corporation is presently implementing Phase II of the Sabarmati Riverfront development. However, there is a strong possibility that the state government will assume full control of SRFDCL before work on Phase III begins. 

As part of the proposed restructuring, the government is considering appointing an IAS officer as the executive director of the company in place of a municipal corporation official.

Sources reportedly stated before the launch of Phase III, political representatives currently serving as directors — including the mayor of Ahmedabad, the chairman of the standing committee and the leader of the opposition — are likely to be removed from the board. They may be replaced by government-appointed officials.

Since the launch of the Sabarmati Riverfront project, the AMC has extended loans worth several hundred crore rupees to SRFDCL each year. These funds have been used for the execution of Phase I and Phase II, as well as for operations and maintenance. According to official figures, a total of ₹2,128 crore has been spent on the project up to March 31, 2025.

SRFDCL was formed in 2004, with Phase I of the riverfront inaugurated in 2011. Phase I included major developments such as multi-level parking facilities, a flower park, the Sabarmati Riverfront Park, Gurjari Bazaar and an event centre. Phase II of the project is currently under way, with an estimated cost of ₹800 crore. In addition, the company has projected an expenditure of around ₹1,000 crore for Phase III.

The AMC reportedly provides loans of approximately ₹250–300 crore to the company each year. As of March 31, 2025, SRFDCL’s outstanding debt stood at ₹1,805.85 crore. A state takeover is expected to significantly expand the scale of the company’s operations and financial footprint.

The state government had earlier considered setting up a new entity to undertake development from Phase III onwards. However, it is now weighing the option of acquiring SRFDCL instead of forming a separate company.

At present, the company is chaired by a retired IAS officer. The AMC serves as managing director, the deputy municipal commissioner as executive director, and there are two independent directors. The mayor, the standing committee chairman, the leader of the opposition, the deputy municipal commissioner (finance) and the Ahmedabad district collector are appointed as non-executive directors. In total, the board comprises 10 directors.

Sources said the state government is now considering appointing its own officers as both executive and non-executive directors as part of the proposed takeover.