Ahmedabad: What began as a city-led urban makeover could soon become a state-run mega undertaking. The Sabarmati Riverfront’s next chapter may come with a change of command as the Gujarat govt seems to be weighing a complete takeover of the Sabarmati Riverfront Development Corporation Ltd (SRFDCL), a special purpose vehicle (SPV ) currently managed by the Ahmedabad Municipal Corporation (AMC). The trigger appears to be the riverfront’s proposed expansion towards Gandhinagar.SRFDCL is currently executing Phase 2 of the project. Sources indicate that the transition is likely to take place before Phase 3 begins.At present, SRFDCL is governed by a 10-member board chaired by a retired IAS officer appointed by the state govt while the Ahmedabad municipal commissioner serves as the managing director. “If the process of state undertaking goes ahead, elected municipal representatives may no longer be on the board. This includes the mayor, the chairman of the standing committee and the leader of the opposition, who currently sit on the SRFDCL board as non-executive directors,” says a senior AMC official. He adds, “These elected representatives are likely to be replaced by state-appointed officials.” The state is also considering appointing a senior, state-level IAS officer as SRFDCL’s executive director, a position that is presently held by a deputy municipal commissioner of the AMC.The possible shift comes against the backdrop of heavy financial exposure by the AMC. The civic body extends loans running into hundreds of crores to SRFDCL every year. These funds have been used to finance Phase 1, Phase 2, allied infrastructure projects, and operations and maintenance costs. As of March 31, 2025, SRFDCL’s cumulative expenditure had reached Rs 2,128 crore.SRFDCL was set up by the AMC in 2004, and Phase 1 of the Sabarmati Riverfront was completed and opened to the public in 2011. “The first phase included projects such as multi-level parking, the flower park, a sports complex, riverfront parks, Riverfront House, Gujri Bazar and the event ground. Phase 2 is currently under execution at an estimated cost of Rs 800 crore, while planning for Phase 3 is underway with a projected outlay of Rs 1,000 crore“Every year, the AMC provides loans of approximately Rs 250 crore to Rs 300 crore to keep the corporation running. As of March 31, 2025, SRFDCL was carrying a debt burden of Rs 1,805.85 crore,” said an AMC source.The belief that the state may step in stems largely from the project’s next stage of expansion. The riverfront is proposed to be extended beyond Ahmedabad to Gandhinagar, a move that would significantly increase the project’s scale, financial requirements and administrative complexity. While the state had earlier explored the idea of creating a separate entity to execute Phase 3 and subsequent extensions, it is now reconsidering that plan and may instead take over SRFDCL entirely.
