The Yamuna Expressway Industrial Development Authority (YEIDA) has decided against increasing the land allotment rates due to the slowdown in the realty sector and recession in property sales.
Allotment rates are fixed prices at which the authorities sell land for housing, industrial units, commercial and institutional projects.
Parties interested in buying the land for setting up industries had requested the officials to decrease the allotment rates in the wake of the slowdown in the realty market and also due to demonetisation, officials said.
However, the three industrial development authorities — Noida, Greater Noida and Yamuna Expressway — are unlikely to decrease the land allotment rates in their upcoming board meetings, likely to be held in June, despite the continuous dip in sales in the realty sector and the demonetisation process which further affected the market.
Officials of YEIDA said that they will freeze the land rate and propose not to increase them in the upcoming board meeting that is scheduled for June 9.
YEIDA is expected to hold its board meeting on June 9 after its chairman, Dr Prabhat Kumar, gave the go-ahead. However, the Noida and Greater Noida authorities are yet to finalise the final dates.
Officials said that irrespective of the board meeting date, the authorities will not decrease the land allotment rates.
“We will not decrease the land allotment rates in any category but the chairman has given his approval to freeze the land allotment rates in all categories and not increase them, keeping in view the slowdown in the realty sector,” said Amarnath Upadhyaya, additional chief executive officer of YEIDA.
The chief executive officer of the Greater Noida and Noida authorities, Amit Mohan Prasad, has asked the officials to prepare the agenda for the board meetings soon.
“The Greater Noida authority has no plan to decrease the land allotment rates because the rates are already low. Also, it is not easy to lower the allotment rates,” said Arvind Mohan Singh, financial controller of the Greater Noida authority.