From a polluting and almost dry river a decade ago, the banks of Sabarmati will soon boast of a skyline of hotels, malls and corporate offices of varying floor space index (FSI).
With Gujarat government's cabinet approving volumetric building by-laws and auction for plots at the Sabarmati Riverfront Development project, the Ahmedabad Municipal Corporation (AMC) anticipates realisation worth Rs 6,000 crore from plot sales.
Developable area of over 12.5 million sq ft is up for grabs for private developers and corporates for anything from offices, commercial complexes, hospitality projects to residential towers.
To attract national attention, AMC is conducting roadshows across metros post the cabinet nod for plot auctions.
"The purpose of such roadshows is to showcase the project and invite bids for e-auction of plots for private development. Historically, there was a disconnect between the citizens and the river due to pollution which is now connected due to the riverfront project," says Mukesh Kumar, municipal commissioner, AMC.
The project saw some delays due to litigations surrounding resettlement of slum dwellers on the river banks which got cleared recently. However, AMC was able to use the gestation period to create demand around the project through public space development.
"We took few years to reclaim the land and create public spots like parks and flower gardens and organise events like water sports, air show and flower show," said Kumar, managing director, Sabarmati Riverfront Development Corporation Limited (SRFDCL), the special purpose vehicle (SPV) for the project.
"While the total realisation at today's rate could be Rs 6,000 crore, the cabinet approval now sets us up for private development," added Kumar.
The resettlement of about 12,000 families living on the banks of Sabarmati cost the body about Rs 1,200 crore. This is 50 per cent of the total cost of the project i.e Rs 2,500 crore.
Designed by city-based HCP Designs as well as the CEPT University, the riverfront project draws its inspiration from riverfront skylines of Paris, San Francisco, Chicago and London, which led to the formation of specific volumetric building by-laws.
Unlike other building by-laws, the volumetric allows SRFDCL to sell plots based on volume instead of area. The by-laws also allow the body to fix varying FSI for different plots.
"A total of 51 plots, which includes 26 plots on the eastern bank and 25 on the western bank will be put up for sale. We are not selling space based on area but based on volume. Hence, if we are selling a volume of 5 floors on a particular plot, then the developer will have to build 5 floors, nothing more or less. Every plot has separate FSI unlike in other parts of Ahmedabad city. Also, the volumetric by-laws state that the land outside the building belongs to the local body with no boundary walls," Kumar said.
In numbers, the project has a total stretch of 22 km, with 11 km on each side of the river. Of 2.253 million sq mtrs available land, only 14.5 per cent or about 326,730 sq metres is planned to be sold for private development, allowing 12.5 million sq ft for private sector participation.
This, Kumar says, will be used to attract major corporates, on the lines of GIFT City. "Corporate houses can have their Gujarat or western headquarter office there. Premium hospitality projects can also come up here," he said.
The local body is taking the help of Confederation of Indian Industry to reach out to the private sector across top cities such as Mumbai, Delhi, Hyderabad and Bangalore for attracting bids.
Interested parties can participate in the e-auction which is on since May 5 till June 5 on SRFDCL's online platform. Once awarded, the winner will have to complete the project within a maximum window of six years.
Meanwhile, AMC has also announced the second phase of the riverfront project, a detailed project report (DPR) of which is being prepared. "Realisation of the existing project will be put to use for development of the second phase of the project which is going to cost Rs 500 crore," Kumar said.