IKEA may soon start work on Noida project as land issues resolved

NOIDA:

NOIDA:

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Swedish home furnishing retailer IKEA may soon start work on its Noida project as the authority has assured to resolve issues related to the penalty imposed for delay in payment, officials said.

The authority’s assurances came during a meeting that took place in Lucknow in the presence of Uttar Pradesh industry minister Satish Mahana.

Noida chief executive officer Ritu Maheshwari, who was present in the meeting, assured the company of taking up all these issues in its upcoming board meeting to find out a solution so that IKEA can start work on the project that is expected to attract total investment of Rs 5,000 crore.

The project is planned to be set up in Sector 51 along the Aqua Line and Delhi Metro’s Blue Line. The authority had in October, 2019, allotted 40,000 square metres of commercial land at a cost of Rs 700 crore.

“IKEA paid Rs 350 crore land cost so far and delayed the remaining payment, inviting a penalty of at least Rs 30 crore as per rules. The IKEA put forth their issues during the meeting in Lucknow and we assured them of addressing their grievances. We will take up the matter in our upcoming board meeting and do the needful as per rules,” said Ritu Maheshwari chief executive officer of the Noida authority.

According to the authority, IKEA had stopped the remaining payment because a 300-metre walkway connecting Delhi Metro’s Blue Line with Noida Metro’s Aqua Line’s sector 51 Metro station was constructed on parts of the land allotted for its project.

Now the authority has agreed to shift the walkway and provide the entire land to IKEA. After allotment, the authority and IKEA did not execute the sub-lease deed of the land. The land is located at the Sector 71/51 Metro interchange along the 30km Noida-Greater Noida Metro link.

“Now after the board meeting, the authority will ask IKEA to start payment and get the lease-deed done to start work at the site. IKEA will invest Rs 5,000 crore in this project and generate jobs. Therefore, the authority will help them as per rules,” Maheshwari said.

IKEA, a Swedish company founded in 1943, is a global design and lifestyle brand leader with a secretive business model that could transform India’s home décor market with its contemporary product lineup.

“IKEA has long term commitment for India. Delhi/NCR is one of our biggest and most important markets. We are in talks with the government and relevant authorities for purchasing land in Noida. It is a big project with large investments, and we are still in the process to resolve all aspects to conclude the transaction. As a responsible company, it is important for us to do things the right way for which we are prepared to invest more time if required,” said IKEA’s spokesperson.

He added, “It is IKEA’s vision to meet 100 million people in India in the coming years. We are entering the markets with an omnichannel approach to be more affordable, accessible and sustainable for the many customers. As a modern home furnishings retailer, IKEA will bring best practices from our 75+ years of experience, create employment opportunities, provide skill & competence and increase manufacturing, thereby creating a positive impact on the State, society and the many people.”