Consultant begins exercise to increase Noida authority’s revenue
On January 11, the authority had roped in Ernst & Young to conduct a survey and submit its report by March 21 about the ways to increase earnings so that the authority can become financially self-reliantnoida Updated: Jan 29, 2018 23:10 IST
Aiming to broaden its revenue source, the Noida authority officials on Monday met with the representatives of Ernst & Young, the consultant hired to discuss the ways to make the authority self-reliant.
On January 11, the authority had roped in Ernst & Young to conduct a survey and submit its report by March 21 about the ways to increase earnings so that the authority can become financially self-reliant instead of depending upon aids or loans for maintenance of civic infrastructure or construction of new projects.
The Ernst & Young team met with the officials and gathered details about various departments related to the survey.
“Ernst & Young has started its exercise so that it can prepare a detailed plan as to how the Noida authority can increase its revenue from various departments such as water, sewage, advertising, group housing, commercial and land among others. Ernst & Young will have to give its report by March 21,” Noida authority’s financial controller Manmohan Mishra said.
The move is expected to put additional burden on residents, who will have to pay more for water, sewer, lease rent and other services, said officials.
“We will soon start imposing a sewage tax on residents. Once the Ernst & Young submits its report, the authority will decide on how much sewage tax will be levied on users. It will be the first time that the Noida authority will impose sewage tax. As of now, residents have to pay a nominal fee for water supply. We will soon increase water supply charges too after the report comes,” said a Noida authority official.
At present, the authority needs around Rs1,500 crore annually to meet its all expenditures, including payment of salary to staff and providing civic services such as water supply, cleanliness, road maintenance and park upkeep.
It spends Rs1,500 crore annually on services, excluding the infrastructure projects such as new roads, underpasses and Metro etc.
The authority gets Rs2,300 crore revenue annually from all departments. But most of its revenue comes from land selling activity. The Noida authority took note of its limited sources of revenue other than the sale of land, which is going to dry up soon as the authority will be left with no land.
As such, it decided to rope in the consultant to find out the ways to make it self reliant by broadening its revenue base.
First Published: Jan 29, 2018 23:10 IST