Gujarat Government Eyes Complete Control of Sabarmati Riverfront Project
The Gujarat government is seriously considering a major administrative shift for one of Ahmedabad's most iconic urban developments. State authorities appear poised to take full control of the Sabarmati Riverfront Development Corporation Limited, which currently operates under the Ahmedabad Municipal Corporation's management.
Potential Governance Overhaul Ahead of Expansion
This potential transition comes at a critical juncture for the riverfront project. The development is preparing to expand beyond Ahmedabad's boundaries toward Gandhinagar, significantly increasing both its geographical scope and administrative complexity. Sources indicate the state government wants to complete this governance change before Phase 3 of the project begins implementation.
Currently, SRFDCL operates as a special purpose vehicle managed by the Ahmedabad Municipal Corporation. The corporation has a ten-member board chaired by a retired IAS officer appointed by the state government. The Ahmedabad municipal commissioner serves as the managing director of this board.
Elected Representatives May Lose Board Positions
If the state government proceeds with this takeover plan, significant changes would occur in the board's composition. Elected municipal representatives would likely lose their positions on the SRFDCL board. This includes the mayor of Ahmedabad, the standing committee chairman, and the opposition leader, who currently serve as non-executive directors.
A senior AMC official explained this potential shift. "These elected representatives are likely to be replaced by state-appointed officials," the official stated. The state government is also considering appointing a senior IAS officer as SRFDCL's executive director, a position currently held by a deputy municipal commissioner from the AMC.
Financial Pressures Driving the Change
This possible governance change occurs against a backdrop of substantial financial exposure for the Ahmedabad Municipal Corporation. The civic body extends significant loans to SRFDCL annually, with amounts running into hundreds of crores. These funds have financed Phase 1 completion, Phase 2 execution, various infrastructure projects, and ongoing operations and maintenance costs.
As of March 31, 2025, SRFDCL's cumulative expenditure had reached an impressive Rs 2,128 crore. The corporation carries a substantial debt burden of Rs 1,805.85 crore as of the same date. Each year, the AMC provides loans between approximately Rs 250 crore and Rs 300 crore to keep the corporation operational.
Project History and Future Plans
The Ahmedabad Municipal Corporation established SRFDCL back in 2004. Phase 1 of the Sabarmati Riverfront project completed and opened to the public in 2011. This initial phase included multiple significant developments:
- Multi-level parking facilities
- The popular flower park
- A comprehensive sports complex
- Multiple riverfront parks
- Riverfront House
- Gujri Bazar marketplace
- A dedicated event ground
Phase 2 is currently under execution with an estimated cost of Rs 800 crore. Planning for Phase 3 is already underway, with a projected outlay of Rs 1,000 crore. The proposed expansion toward Gandhinagar would dramatically increase the project's scale and financial requirements.
State Government Reconsiders Earlier Plans
The state government had previously explored creating a separate entity specifically to execute Phase 3 and subsequent extensions. However, authorities are now reconsidering that approach. Instead of establishing a new organization, the government appears to favor taking complete control of the existing SRFDCL structure.
This potential takeover represents a significant shift in how Gujarat manages its flagship urban development projects. What began as a city-led initiative could transform into a state-run mega undertaking, changing both governance structures and future development trajectories for one of India's most celebrated riverfront transformations.
