Fadnavis misguided state by saying IFSC will be set up here: Congress

The shifting of IFSC to Gujarat was with the sole intention of making it a global financial hub. It will be at the cost of Maharashtra, said Congress general secretary Sachin Sawant

The Maharashtra Congress alleged that the decision of moving the International Financial Services Centre (IFSC) to Gujarat’s GIFT City from Mumbai’s Bandra-Kurla Complex (BKC) has cost dear to Maharashtra as it resulted in the diversion of foreign direct investment (FDI) worth ₹1.63 lakh crore to Gujarat in 2020-21. The Congress has alleged that opposition leader Devendra Fadnavis, during his stint as the Maharashtra chief minister, had lied to the state that there was a separate IFSC planned for Maharashtra.

Congress claimed that Fadnavis kept misguiding Maharashtra by stating that a task force was appointed by the Modi government to allot a separate IFSC for Mumbai. BJP has rubbished the allegations and stated that the decision to relocate IFSC was taken during the second tenure of the United Progressive Alliance (UPA), led by the Congress, in the Centre. (HT FILE)

BJP has rubbished the allegations and stated that the decision to relocate IFSC was taken during the second tenure of the Congress-led United Progressive Alliance (UPA) in the Centre.

Quoting the recent FDI figures released by the Union finance ministry, Maharashtra Congress general secretary Sachin Sawant said, “Of the ₹1.94 lakh crore that came from the US and Singapore in the form of FDI in computer software and hardware to India, ₹1,62,830 crore went to Gujarat in 2020-21. Gujarat received 78% of the total FDI received in this sector in 2020-21. This was IFSC-specific FDI. Gujarat, which used to be on the sixth position in FDI, jumped to the top position in the financial year only because IFSC was taken away to that state.”

Sawant has alleged that this is a “conspiracy” by the Modi government to diminish Mumbai’s status as the country’s financial capital. “The shifting of IFSC to Gujarat was with the sole intention of making it a global financial hub. It will be at the cost of Maharashtra. In the future, too, Gujarat will continue to get a higher share of FDI because IFSC has been shifted there,” he said.

According to the Congress leader, the UPA government had decided to set up IFSC in Mumbai in 2007. The Modi government took it away to Gujarat but the Fadnavis regime did not oppose it.

“Fadnavis kept misguiding Maharashtra by stating that a task force was appointed by the Modi government under [former minister] Jayant Sinha to allot a separate IFSC for Mumbai. But it turned out to be hogwash. BJP (Bharatiya Janata Party) is responsible for Maharashtra’s loss,” he said.

Countering Sawant’s claims, BJP vice-president Madhav Bhandari said: “It has been proven earlier as well that it was the decision [to shift IFSC to Gujarat] of the Manmohan Singh government. The Congress is unnecessarily raking up the issue again. Instead of talking about the FDI meant for IFSC, the ruling parties in Maharashtra should first reply why the existing industries are going to other states. There are many automobile companies which are shifting their facilities from the state or setting up new units in other states. It is mainly because of the extortion spree by the Shiv Sena and the Nationalist Congress Party in Pune and other parts.”