Noida authority to create corpus fund for civic work

To begin with, the authority has shifted ₹400 crore to this corpus as this amount came from lease rent collection from different allottees

NOIDA: The Noida authority has decided to set up a dedicated corpus fund to be spent over the municipal works of the city.

The Noida authority spends ₹1,500 crore annually on maintenance and operations of the municipal works, and fetches its revenue out of selling properties or lease rent collection. (Sunil Ghosh/HT File)

The step came as the finance department realised that if such a fund is not earmarked, it can become challenging to run the authority when there will be limited sources of income or revenue collection, said officials aware of the development.

The Noida authority spends ₹1,500 crore annually on maintenance and operations of the municipal works, and fetches its revenue by selling properties or lease rent collection.

“We have prepared a proposal about the dedicated corpus fund that was approved by the Noida authority chief executive officer and later also approved by the Noida board for implementation. The objective is to earmark a fund that can be utilised for the operations and maintenance of the municipal work in the city,” said a Noida authority official not authorised to speak to the media.

Noida board chairman and Uttar Pradesh chief secretary Manoj Kumar Singh on March 28 approved the proposal related to this corpus.

“ ₹1,500 crore annually is a fixed expenditure and this will increase in the time to come as the population of the city will increase, so will be the spending. Currently, Noida authority collects revenue out of selling leftover plots and also in collecting the lease rent from the allotted properties. But what will happen when there will be no land to sell and no lease rent to collect. Therefore, we aim to make a corpus on which the authority can earn interest to run the municipal function in future in time of need,” said the same official.

To begin with, the authority has shifted ₹400 crore to this corpus as this amount came from lease rent collection from different allottees.

“We offer an option that owners of the properties including residential, commercial or industrial etc can pay one time lease rent so that they do not need to pay it in future. In lease rent, we have collected ₹400 crore in 2024-25 and shifted into this corpus. We have decided to shift the one-time lease rent fund to this corpus so that when there will be left no such revenue collection option, we can use this fund to run the municipal work,” the official added.