Gandhiji’s place of birth, Gujarat, recently witnessed a significant shift in its liquor policies. The Gujarat government, on a Friday, granted permission for alcohol consumption within hotels, restaurants, and clubs offering ‘Wine and Dine’ services in the Gujarat International Finance Tec-City (GIFT City) in Gandhinagar. Notably, Gujarat is renowned for being a dry state, where the sale and consumption of alcohol are restricted.
According to an official notification, all employees and owners working within the entire GIFT City will now be eligible for a liquor access permit. This development is noteworthy as it marks a departure from the traditional prohibition stance of the state. Additionally, a provision has been introduced to allow authorized visitors of each company to consume alcohol in establishments with temporary permits, provided they are in the company of permanent employees.
Hotels, restaurants, and clubs situated in or coming to GIFT City can now obtain a Wine and Dine facility, indicated by an FL3 license. However, the government specified that these establishments are not allowed to sell liquor bottles. Officially serving employees and visitors of GIFT City will now be permitted to consume liquor within the designated venues.
Ashish Chauhan, CEO of the National Stock Exchange (NSE), expressed his enthusiasm for this development, stating that GIFT City has gained a significant advantage. On a social media platform, he shared, “Interesting development – Gift city in Gandhinagar Gujarat – International Finance Services Center (IFSC) – has got a leg up today. Government of Gujarat has given exemption from alcohol prohibition to certain entities including visitors and residents by issuing a notification.”
As of June 2023, GIFT City boasts a prominent position, hosting 23 multinational banks, including major names like HSBC, JP Morgan, and Barclays. It is also home to 35 fintech entities, two international stock exchanges with an impressive average daily trading volume of $30.6 billion, and India’s first international bullion exchange, featuring 75 onboarded jewelers.
Earlier in the month, Prime Minister Narendra Modi expressed India’s ambition to establish GIFT City as a global hub for sustainable finance. This aligns with the nation’s goal of securing $10 trillion in investments to achieve net-zero emissions by 2070. Modi highlighted GIFT City’s role in facilitating green capital flow through the issuance of financial instruments such as green bonds, sustainable bonds, and sustainability-linked bonds.
Moreover, the government is actively working on expanding GIFT City’s role, aiming to transform it into a cutting-edge financial services and technology nerve center. Recently, a committee recommended rules for direct equity listing at the International Financial Centre (IFSC) in GIFT City, proposing a connection between depositories in the IFSC and the rest of the country. This connection would enable the direct issuance of new equity shares and the transfer of existing equity shares, emphasizing the unique regulatory framework of the IFSC as a separate financial jurisdiction.
