The future of the TransStadia Stadium located in Kankaria, Ahmedabad, once a dream project of the Gujarat government, is as much in doldrums as the financial longevity of the companies behind this mega project.
Insolvency has been filed against TransStadia Holdings Pvt Ltd and SE TransStadia Pvt Ltd, which are involved in the construction and management of stadiums, clubs and universities. These two companies have declared that their financial condition is in bad shape. There is no money to pay to creditors. If these companies do not fulfil their financial obligations, they might go into liquidation.
In the year 2016, TransStadia Stadium was opened on PPP basis at Kankaria in Ahmedabad city at a cost of Rs 550 crore. It was inaugurated by PM Modi himself. Built in the centre of the city, it has a capacity to seat 20,000 spectators.
The Kabaddi World Cup was held in the year 2016 at the same venue. International Cup football was organised here in the year 2019. It was decided to hold the Women’s World Cup- FIFA U-17 in the year 2020, but due to Corona, it was put on hold. Not only games, star-studded musical nights are organised by getting a huge amount of sponsorship. Stores have been leased to branded companies around the stadium.
There is also a club functioning in the stadium in which membership is given by charging a hefty fee. A university is also running in the name of TransStadia in which various courses are running. Between the income from stadiums to malls, clubs and universities, why TranSstadia Holdings Pvt Ltd and SE TransStadia Pvt Ltd lost economic viability is the subject of investigation.
It is said that the stadium was constructed on the site of the dairy. For the promotion of sports, the state government had given the huge space of Abad Dairy to TransStadia company.
It is also reported that the project was given to the owner of Setco Automotive Company, which manufactures auto parts in Halol, despite having no experience in the construction and management of stadiums.
The shutters of the TransStadia stadium in the heart of Ahmedabad are about to be down as the government has started preparations to build a mega sports facility for the Olympics being planned in Gujarat. It has been found that the company may go into liquidation if it does not fulfill the financial obligations within the stipulated time.
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