Greater Noida pays ₹1100 crore dues to banks - Hindustan Times
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Greater Noida pays 1100 crore dues to banks

Jan 28, 2024 06:12 AM IST

The Greater Noida authority is likely to come up with more plot schemes for industrial, commercial and other uses this year in a bid to raise revenue

The Greater Noida authority has started undertaking steps to improve its financial health as it is faced with the challenge of paying off around 5,000 crore loan to different banks and the Noida authority.

The Greater Noida authority, in 2009, had taken a <span class='webrupee'>₹</span>3,785.95 crore loan from the cash-rich Noida authority when it was required to pay off the hiked land compensation to the farmers and for other purposes. (Sunil Ghosh/HT Photo)
The Greater Noida authority, in 2009, had taken a 3,785.95 crore loan from the cash-rich Noida authority when it was required to pay off the hiked land compensation to the farmers and for other purposes. (Sunil Ghosh/HT Photo)

The Greater Noida authority officials says it took a 6,000 crore loan in the past 10 years from banks and the Noida authority to pay an additional 64.7% compensation for the land acquired from farmers.

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Of this, this month, it paid around 1,100 crore to the HDFC and the Bank of Baroda, senior officials said, adding that an amount of 4,900 crore remains to be paid.

The authority is selling land through different schemes for industrial and commercial use to raise revenue and settle the remaining dues, said officials.

According to chief executive officer, Greater Noida authority, Ravikumar NG, they have paid 1,100 crore to the HDFC and the Bank of Baroda. “Now, we have decided to pay 10 crore every month to the Noida authority so that they can pay off a 2,900 crore loan that they took for different purposes,” he said.

The Greater Noida, in 2009, had taken a 3,785.95 crore loan from the cash-rich Noida authority when it was required to pay off the hiked land compensation to the farmers and for other purposes.

Till 2020, the debt-ridden Greater Noida failed to pay up the dues, citing the real estate sector slowdown, said officials. But, in 2022, it started paying the debt to the Noida authority as the greenfield Noida airport, coming up in Jewar, boosted growth in that region, earning the Greater Noida authority more revenue out of land sales, among others, said officials. The Noida authority charges a 9.7% interest on this debt.

“We aim to soon get rid of the loan amount by increasing our revenue collection,” Ravikumar NG said.

The authority has also invested 1,500 crore in fixed deposits in banks for an annual interest of 7.85%, said officials, adding that 1,000 crore have been invested in the Union Bank of India and 500 crore in the Bank of Baroda.

The Greater Noida authority is likely to come up with more plot schemes for industrial, commercial and other uses this year in a bid to raise revenue, said officials.

The authority, however, is yet to decide the dates for launching these schemes, but all schemes-related formalities have been completed, said officials.

The Greater authority is developing new industrial sectors including Ecotech Extension 1, 2, 3, 4, 5, 6, 7 and 8, among others, to provide land to industrial units, said officials.

As the Noida airport will start operations in 2024-end, the demand for the industrial and other category of land has spiked thereby helping the Greater Noida authority to collect more revenue.

In 2020, the Noida authority had suggested to the state government that the Greater Noida authority can hand over its land in lieu of dues but that proposal was later rejected. Since then, the Greater Noida authority has paid around 900 crore dues, said officials.

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  • ABOUT THE AUTHOR
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    Vinod Rajput writes on environment, infrastructure, real estate and government policies in Noida and Greater Noida. He has reported on environment and infrastructure in Delhi, Gurgaon and Panchkula in the past.

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