SPV for SG Road redevelopment gets green light with ₹400 crore allocation in Gujarat

Ahmedabad, Gujarat — September 18, 2025 The Gujarat government has given its approval today to establish a Special Purpose Vehicle (SPV) for the redevelopment of the Sarkhej-Gandhinagar (SG) Road, a major arterial stretch linking Ahmedabad with Gandhinagar. The project has been marked as a priority under the Urban Development Year 2025. Total funding earmarked for the SG Road redevelopment is ₹400 crore. The scope of work spans approximately 44 kilometres, from Ujala Circle in Ahmedabad to Chiloda Circle in Gandhinagar. The SPV will have the Urban Development Department’s Principal Secretary as its Chairperson, and the Municipal Commissioner will serve as the Managing Director. This structure is intended to allow streamlined decision-making and coordination. What’s on the cards: major improvements to traffic management (to ease congestion), construction of better parking facilities, creation of recreational and green spaces, food streets, upgraded public utilities, and overall enhancement of the visual and functional aspects of the road. There will also be regulatory powers delegated to the SPV to enforce standards, oversee cleanliness, and ensure infrastructure upkeep. Connectivity improvements on both sides of the SG Road are planned to reduce bottlenecks. This is not just a cosmetic or beautification exercise: the goal is also practical. The SG Road is heavily used, suffers from traffic overload, inadequate pedestrian and parking infrastructure, and sometimes lacks coherence in planning as development along the road has been piecemeal. The SPV is seen as a way to bring all arms of municipal authority, utilities, transport, regulatory bodies under one roof for holistic redevelopment. There is also an eye on the future: Ahmedabad has been proposed as a host city for the 2030 Commonwealth Games (though final confirmation and bidding outcomes are still in discussion), and improvements to key urban roads such as SG Road are being viewed as part of urban upgrading, capacity building, and display of civic pride. Completing the project well ahead of 2030 is seen as desirable. Local stakeholders, including residents, shopkeepers, traffic experts, and urban planners, have welcomed the move, though many caution that the devil will be in implementation: timely land acquisition, relocation of utilities, effective traffic diversion during construction, maintenance post-construction, and avoiding cost overruns will be key. The government's message is that SG Road could become an iconic stretch combining utility, aesthetics, and citizen-friendly amenities—making movement smoother, environment cleaner, and public spaces more usable. If successful, the project could serve as a model for similar arterial road redevelopment in other major urban centres of Gujarat. But for now, ₹400 crore, a new SPV, and a promise of transformation mark a new chapter for SG Road.