Gandhinagar

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In a major development, the government in the western Indian state of Gujarat on Friday authorised that individuals employed in the GIFT city (Gujarat International Finance Tec-City), as well as visitors, will be able to consume alcohol. The announcement assumes importance as Gujarat has been a dry state since its formulation in 1960. 

According to the notification, the identified stakeholders will be given a 'Liquor Access Permit" enabling them to consume liquor in hotels, restaurants, clubs offering “Wine and Dine” within the GIFT City. 

"Apart from this, a provision has been made to allow authorised visitors of each company to consume liquor in such hotels/restaurants/clubs having temporary permits in the presence of permanent employees of that company," read the notification. 

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Additionally, hotels, restaurants and clubs located or coming to GIFT City will be able to obtain the FL3 license, required to serve alcohol. 

"The whole process Narcotics and Excise Department, State of Gujarat will carry out supervision and control over the import, storage and serving of liquor by FL3 licensed hotels, restaurants and clubs located in GIFT City area," the notification further read.

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GIFT City

The GIFT city has been developed by the state government to be the next big tax-neutral financial hub in the country. One of the pet projects of Indian Prime Minister Narendra Modi, GIFT City was launched on the outskirts of Ahmedabad in 2011 when PM Modi was still the chief minister of Gujarat. 

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Although more than 400 entities, mostly banks have set up camps in the modern office avenues of GIFT City, the overall progress has remained tepid. The hub has struggled to develop into a thriving financial ecosystem and experts have argued that the 'no-alcohol' policy may have been one of the contributing factors. 

Earlier this month, PM Modi visited the city and addressed an investment conference to breathe life into the project. A few weeks later, the state authorities lifted the prohibition policy.  

(With inputs from agencies)