‍Sabarmati Riverfront Development Project‍

Background Information

Since time immemorial, rivers have been the cradles of civilizations and many great cities have developed around the banks of great rivers. Rivers lend a strong identity to cities and the quality of riverfront development is very often a strong indicator of how developed a city is in terms of its quality of life and urban infrastructure.

Riverfront development is also one of the main methods of revitalizing a city and has been successfully implemented in Western countries.

The city of Ahmedabad, located on the banks of the river Sabarmati, is the largest city in the State of Gujarat. The Sabarmati River has served as Gujarat's lifeline. It has been a major source for drinking water and recreation for the city of Ahmedabad.

Why River Front Development? 

For a long time the Sabarmati River has been subjected to severe pressures owing to the fast pace of urban and industrial growth in the city. The Sabarmati is a major source of water for the city due to the regular release of water from the Dharoi Dam and also from Narmada Canal upstream. However, for years, the riverfront remained neglected. Its potential to provide the city with social infrastructure and recreation facilities went untapped.

Sewage contaminated the storm water outfall and the dumping of industrial waste posed a major health and environmental hazard to the river. The slums located along the riverbed have always been a major impediment to efficient management of monsoon flooding of the river.

It has long been acknowledged that appropriate development of the riverfront can tum the river into a major asset, which can improve the quality of environment & life in Ahmedabad, improve the efficiency of its infrastructure, conserve important places of heritage, and create an opportunity for recreation and the hospitality industry in the city.

In May 1997, the Ahmedabad Municipal Corporation (AMC) established the Sabarmati River Front Development Corporation Limited (SRFDCL) to develop the riverfront. In 2004, the land of the riverbed (162.8 hectares) was transferred to AMC for execution of the Riverfront Project through SRFDCL and thereafter an action plan was prepared to expedite the execution of the project, which is being regularly monitored by the state government. The total estimated cost of the project is INR 11.51 billion.

•Perennial Water Body (11-km long)

The ambitious project involves creating embankments and developing an 11-km stretch of riverfront along both sides of the river, from upstream of Subhash Bridge to Vasna Barrage. This stretch of Sabarmati River would become a perennial water body after completion of the River Front Development Project.

•Land Use of Reclaimed Land (202 hectares)

The main considerations in allocating land use were: existing land uses along the river; extent, location and configuration of reclaimed land available; potential for development; the structural road network and form of the city; bridges proposed in the Ahmedabad Development Plan and, the possibility of providing adequate infrastructure.

Goals of the Initiative

Objectives of the SRFD Project are as follows:

•To lead the orderly development of the urban area of the city by developing the unused riverfront of Sabarmati River for creation of basic infrastructure facilities like roads, bridges, sewerage drainage, and water supply.

•To beautify the large stretch of riverfront measuring almost 20 kilometers by providing gardens, promenades, and permanent open recreation areas.

•To beautify the city and have a cleaner environment as well as to make the city pleasant to live in. To make it possible for the citizens to use the riverbanks and enjoy the entertainment on both its sides.

•To eliminate the flood hazard & to relocate the slum dwellers into a proper pukka housing & to create the city river entertainment complexes.

•To develop recreational facilities, walkways, and promenades on both banks of the river.

•To develop residential and commercial plots of land by reclaiming the land of the riverbed.

•To explore the possibility of providing quick transportation systems like Mass Rapid Transit System (MRTS) and Bus Rapid Transit System (BRTS) by utilizing the riverbed land.

•To develop the river and surrounding area as a tourist spot by creating various entertainment, recreational and amusement facilities.

Parties and Partners to the Initiative and Resources Used for Implementation

•Lead Planning & Implement Agency

AMC: Ahmedabad Municipal Corporation is the lead implementing agency of the project. SRFDCL is special purpose vehicle created by AMC on a Build Maintain, Operate and Transfer (BMOT) basis.

•Project Support

Ahmedabad Urban Development Authority (AUDA)

Urban Development & Urban Housing Department, Government of Gujarat

Housing and Development Corporation (HUDCO)

The resources used for implementing the initiative include:

The funding strategy was required to mitigate the timing difference between revenue and funding requirement for project construction. The following strategy was used.

•Equity Capital

The AMC has committed to providing capital to SRFDCL.

•Loan Funds

Due to the timing of expenditures (over a 5-year period) and revenues (over a 10 to 12-year period), it was necessary to borrow funds to cover the difference between the returns available and the cash flow requirements of the project. Available alternatives were explored including commercial bank loans, special infrastructure loan funds and direct borrowing from the capital market through a special bond issue. Finally, the funding was arranged in an innovative manner. AMC took responsibility for providing funds for repayment of the loan till such time as when the cash flow situation improved. Thus the loan was tied up with HUDCO. The repayment was done by AMC but routed through SRFDCL since SRFDCL is the borrower. Initially, such payments made by AMC to SRFDCL are being treated as equity contribution by AMC. Later contributions are considered to be a junior loan from AMC. Thus a mechanism was established for regular transfer of equity funds from AMC to SRFDCL.

Presently, the total project cost of 1,152 crore rupees for Phase I has been divided into three stages. The first stage of 240 crore rupees was financed through equity contributions from AMC (equity and preference shares) and a HUDCO loan of 200 crore rupees.

Stage II of Phase I of 398 crore rupees is under construction. This phase would be financed through equity contributions of 48 crore rupees from AMC and a 350-crore rupees term loan from HUDCO.

Financing for Stage III of Phase I and Phase II would be tied up through a mix of AMC contributions, revenue proceeds and a term loan as required. If properly managed, the proceeds from the sale of land created by the project will easily cover the full cost of the project including the cost of interest paid on construction period loans and repayment of equity investments. Owing to the boom in property prices, even 14 percent of the land available for development would be sufficient to recover the investment made in the project.

•Present Financial Status

SRFD has commenced the implementation of the project on both east and west banks of the river between up Stream of Railway Bridge and Vasna barrage by reclaiming the riverbed. A total of 740 crore rupees, representing Stage I of Phase I of the project, has been already been spent on construction work for the project.

Innovation for the Initiative

The Sabarmati Riverfront Development Project is conceived and being implemented as a pioneering multi-benefit project with significant urban transformation potential. Civilizations throughout history have developed along water bodies. Pressure of an increasing urban population, unregulated growth of metropolises and the developing nature of the economy have led to many waterfronts becoming lost to the people in India, with the original importance and contributions of these water bodies relegated to history. A riverfront development project is a city-level intervention in urban planning, which seeks to return some of the advantages of the waterfront, as well as add new ones. Thus it is considered an evolutionary project.

The project involves development of the Sabarmati Riverfront in Ahmedabad city, which includes reclamation of 202 hectares of land from the riverbed, construction of embankments and roads, the laying of water supply lines, trunk sewers and pumping stations, development of gardens and promenades along the riverfront, the sale and development of reclaimed land,  and resettlement of slums along the river.

The Riverfront model was inspired from similar experiences outside the country, with the understanding that the Indian context was different. Riverfronts are common among cities in Europe, and some now in China. However, there was no similar model available in the country and in that sense it was a challenging idea to implement.

After the implementation of the project, a large number of people from other parts of India and outside have visited the project and assessed its replicability. Similar projects are now being planned in Chennai, Lucknow, Nashik, Pimpri-Chinchwad and many other locations. The riverfront project in Ahmedabad promises to start a number of similar attempts in India.

Obstacles and Solutions for Innovation

There was some resentment initially among the people who lived in unauthorized settlements on the riverbed who were being moved. However, now they have been resettled and rehabilitated with dignity. 

Outcomes and Assessments

Outcomes achieved are as follows:

•Environmental Improvement

Interceptor sewer system ensuring clean water in the river

Retention of water in the river for the whole year

Recharge of ground water aquifers in the city

Elimination of flood hazard

•Creating a network of open public spaces

Wide public promenades along the entire length of the river

Variety of public gardens and parks including extension of existing parks

•Providing adequate public access to the river

Development of one major north-south link on the eastern side

Development of various access roads to the riverfront to improve public access

Development of two new bridges across the river

•Rehabilitating the slums and informal markets

Slums impacted by the project have been relocated and rehabilitated on elevated and serviced land, eliminating the risk of flooding for many poor communities and improving economic wellbeing.

The project will strengthen and upgrade the existing informal markets on elevated land, free of disruptions due to flooding in monsoon season.

•Creating vibrant urban neighborhoods

Implementation of special urban design guidelines to transform the riverfront into a vibrant and aesthetically pleasing environment.

•Boating & Recreational Activities:

SRFDCL has been given the right to operate boating services in Sabarmati River:

a)Non-motorized boating

b)Motorized boating (General Boating)

c)Amphibian Bus and Zip line activities are under finalization

Methods Applied

No specific methods have been used as yet, as the project is under implementation. On completion of the project, several lead indicators will be developed.

Benefits to Other Cities

•Recharge of the ground water aquifers of the city: The proposed project could recharge ground water resources owing to the continuous presence of water in the river. Ahmedabad is heavily dependent on ground water to meet its water requirements.

•Strengthening of transportation networks in the city: The proposed riverfront could decongest the major north–south road (Ashram road) by providing additional links parallel to the river. It could also provide additional links between the two banks for relieving river traffic. This would provide continuous links from the fringes of the city, say from the airport to city center.

•Elimination of flood hazard: In the SRFD project, “afflux bunds” or embankments are being constructed. This could eliminate the annual flood, impacting low-lying areas of Ahmedabad.

•Relocation and rehabilitation of slums: The poor urban communities residing in slums on the banks of Sabarmati River would be shifted to another location where they would be given new housing. The rehabilitation packages will thus improve their economic well-being, while eliminating the risk of flood washout.

•Flood management: Relocation of slums will make easy the task of flood management.

•Provision for informal markets: The informal markets (Gujari, Phoolbazar) which are held on the banks of the river will get better infrastructure to guard against problems like lack of accessibility, parking space, water supply etc.

•City level recreational space: Ahmedabad lacks adequate public and open space. The proposed project consists of over 40 hectares of land to be developed into parks and gardens, and space for cultural facilities.

•Beautification of the city: The proposed riverfront will bring a pleasant environment to the city.