After GIFT City 'success', Gujarat to ease liquor ban at 3 more places

After GIFT City, the Gujarat government is set to relax liquor prohibition at Rann Utsav, the annual 100-day festival at Dhordo in Kutch, the Diamond Bourse in Surat, and the Statue of Unity in Narmada district.

The government will make the formal announcement in less than two weeks. It further planst to launch a mobile app for enterprises to procure liquor permits.

“The move is meant to boost trade in Gujarat and attract more foreign tourists. We are waiting for the completion of the test run of the mobile application to get a liquor permit within the state. We will be making a formal announcement along with launching the mobile application,” Deputy CM Harsh Sanghavi told the media earlier.

Mobile app for permit

The dedicated mobile app will allow people, both locals and those from outside Gujarat, to upload documents, make payments, and receive a digital permit after verification. The permit will allow holders to purchase liquor from authorised hotels across the state.

“The application simplifies the process of getting a permit, especially for tourists who find it difficult to get the form, and then submit it with documents,” added Sanghavi.

Also Read: GIFT City sees first-ever earnings with liquor sales, with little cheer otherwise

On December 30, 2023, the Gujarat government had relaxed prohibition within the premises of Gujarat International Finance Tec-City (GIFT City) at the outskirts of Gandhinagar, Gujarat’s capital.

Interestingly, the decision to relax the prohibition law at Rannotsav in Kutch, Surat’s Diamond Bourse, and the Statue of Unity comes after the fintech hub generated its first revenue via liquor sales this year.

Money generator

GIFT City, Prime Minister Narendra Modi’s pet project, had failed to generate any revenue through the business ventures within its premises for 18 years from inception. Finally, this April, the Gujarat government earned Rs 94.19 lakh through the sale of liquor at GIFT City.

Also Read: Gift City | Liquor permit does little for investments, but realty booms

“By relaxing the prohibition at three more locations in dry Gujarat, the government hopes for a repeat of GIFT City. However, liquor isn’t the only factor that attracts foreign tourists or investors to a state," Bhavna Ramrakhiyani, founder of Sarkhej Roza Crafts and Womens’ Collective, an organisation working on preserving and promoting the sufi tomb Sarkhej Roza, told The Federal.

"Amenities like roads and other means of connectivity are a huge factor. Two of the three locations – Surat’s Diamond Bourse and Dhordo, where Rann Utsav is organised every year, are poorly connected by road, railway, and air. So, instead of hoping for a miracle by allowing liquor, the BJP government should focus on better civic amenities in these places to boost trade and tourism,” Ramrakhiyani added.

Not up to mark

Rannotsav or Rann Utsav is an annual festival organised by the Gujarat tourism department since 2005. The festival, meant to promote Kutch’s local art and culture, began as a three-day festival. Over the years, it evolved into a 100-day festival at Dhordo, a village on the Rann of Kutch desert.

Despite crores spent in organising and advertising about the festival, the Rannotsav has not been able to attract many foreign tourists.

Also Read: A tale of lost villages and tribal poverty under the grandeur of Statue of Unity

Tourism department data says Rs 20.98 crore was spent to erect tents for Rannotsav in 2021, 2022, and 2023. But it witnessed a footfall of just 465 foreign tourists.

Mostly domestic tourists

“Gujarat attracts around 50 lakh tourists every year. The majority of the tourists are drawn by Rannotsav, Gir forest and sanctuary, Saputara festival, Statue of Unity, and the religious tourism of Devbhoomi Dwarka," said Rajender Kumar, Secretary of the Gujarat tourism department.

"However, barring 2025, the majority of these tourists have been from other states. Gujarat has had very few foreign tourists, barring 2023. That year, Gujarat saw a 28 per cent increase in foreign tourists owing to the ICC Men’s Cricket World Cup. So, the influx was limited to Ahmedabad and had no impact on other tourist spots,” he added.

The Statue of Unity too faces the same situation.

Also Read: How GI tag has brought fresh focus to ‘Kutch Ajrakh’, helped find new platforms for promotion

Despite much fanfare, foreigners comprise less than 10 per cent of the total footfall at Ektanagar, the new town in Narmada district that is home to the world’s tallest statue.

Per data from the office of the Commissioner of Tourism, the Statue of Unity received a footfall of 50 lakh tourists in 2023, 46 lakh in 2022, 34.34 lakh in 2021, and 12.81 lakh visitors in 2020. However, the majority of them were domestic tourists, with just 25,291 foreign tourists in 2021 and 22,000 in 2022.

Diamond Bourse, a ghost building

The Surat Diamond Bourse (SDB) was another venture of the Gujarat government, inaugurated with much fanfare in December 2023 by Modi. Two years hence, it stands as a ghost building at Khajod village in the outskirts of Surat.

Spread across 64 lakh square feet and built at a cost of Rs 3,200 crore, the SDB was touted as the world’s largest office building complex surpassing the Pentagon in the USA.

Also Watch: Watch | Why is Surat’s diamond bourse deserted?

The building has space for 4,500 offices that can accommodate 1.5 lakh workers, and was meant to be the ‘one stop destination’ for diamond trade in the country.

However, the majority of around 1,000 diamond companies that had begun to operate from the SDB have shifted out.

A diamond trader's experience

“The traders who came from Mumbai have shifted to the Bharat Diamond Bourse in Mumbai, while the local traders of Surat have reopened their offices in Katargam and Varachha areas, the traditional diamond hub of Surat. I regret buying an office space in SDB. I could have used that huge sum of money in my business. I shifted out in February last year, as it was pointless to be so far from the city. There is no mode of communication connecting SDB with Surat city. Anybody who visited the office from the airport had to pay a hefty amount for a cab drive. Additionally, it was difficult for workers to commute too,” a diamond trader from Surat told The Federal.

Also Read: Surat Diamond Bourse: World’s largest office building now hosts just 8 firms

“It’s a very dull time for diamond traders of Surat, especially after the US tariff was imposed this year. I don’t know whether just by allowing liquor to be sold and consumed there, traders would be motivated to go back to the SDB,” he added.