In a significant development, the Eknath Shinde government issued an order formally recognising the International Finance and Business Centre (IFBC), that stands on 200 hectares of land in the Bandra-Kurla Complex (BKC), on Friday. This move is expected to remove all the legal, technical and procedural hurdles faced by the Mumbai Metropolitan Region Development Authority in attracting investments from and outside the country. Sources in the state urban development department have clarified that the IFBC should not be confused with the much-debated International Finance Centre (IFC). The Centre had, in 2018, already conveyed that it could not approve of a special economic zone (SEZ) for the proposed IFC, as the BKC plot did not qualify for the same; it did not have 50 hectares of contiguous land, as required under the SEZ Act.
A senior officer from the urban development department told The Free Press Journal, “With the government’s decision to declare the IFBC on 200 hectares of land in the G, GN, G-Txt and E blocks in the BKC, its potential will be further exploited in a speedy manner. Apart from the monetisation of the land, it will attract more domestic and foreign investments. The MMRDA can now comfortably address the legal, technical and procedural issues raised by the investors.” He further said that “the approval of the Maharashtra State Industrial Policy -1993, announced by the state government on April 22, 1993, with respect to the IFBC/ financial business area is being maintained by this order.” He clarified that although the decision had been taken as far back as 1993, a formal order had not been issued and it was done on Friday.
“In accordance with the orders and policies of the state government regarding the development of the BKC as an IFBC, the State Bank of India, Bank of India, Bank of Baroda, Kotak Mahindra Bank, Canara Bank, Dena Bank, Punjab National Bank, Income Tax, Reserve Bank of India’s reputed financial institutions like the Bank of India, NABARD, National Stock Exchange (NSE) and other international institutions, as well as the offices of international financial institutions are established. Currently, the Bandra-Kurla Complex has developed into a major international finance and trade centre in India,” reads the government order.
Further, the BKC’s E block has already been developed with major financial institutions like the Reserve Bank of India, income-tax and sales tax departments. “The allotment of land to IFBC in the Bandra-Kurla Complex was done as per Land Disposal Policy -1977 to financial institutions, leading Indian and foreign companies, Information, data processing, computer and telecommunication organizations, Trade and business organizations, Regulatory authorities, Business and Business Organizations, Regulatory Authorities, and Business Support Services,” it adds.
The government’s decision comes days after it cleared Rs 60,000 crore debt to be raised by MMRDA for various infrastructure projects and also gave approval for the handover of 4.2 hectares land for the construction of an underground terminal and tunnel for the Mumbai-Ahmedabad bullet train project. Thereafter, the National High Speed Rail Corporation (NHSRC) has invited bids for the design and construction of underground terminus at BKC. “It is not just a coincidence that since the change in the government, pending issues with regard to recognising the BKC as IFBC and handing over land to the NHSRC were sorted out. This will boost investment in the BKC as well in the Mumbai Metropolitan Region and in Maharashtra in general,” said another official.
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