Noida Authority approves ₹5037 crore budget for the city

The Noida authority on Tuesday approved a budget of ₹5,037 crore for the financial year 2020-21, of which the net expenses will be ₹4,600 crore.

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Of this, ₹1,000 crore will go towards for land acquisition to develop industrial sectors (up from ₹600 crore of last fiscal), ₹126 crore for developmental work in villages (₹106 crore last fiscal) and ₹221 crore for the Noida-Greater Noida Metro Link connecting Noida’s sector 71/50 to Greater Noida West’s sector Knowledge Park-V area. Other expenses were not expanded upon.

The authority had approved ₹6,289 crore budget last year.

“We will receive a revenue of ₹5037.37 crore for the financial year 2020-21 from different heads and have decided to spend ₹4,600 crore,” said Ritu Maheshwari chief executive officer of the Noida authority.

The authority also approved a proposal that allows the developers to pay the 8.5% simple interest on the group housing land dues. This is following a Supreme Court order that directed the Noida authority, and also the Greater Noida authority, to impose the interest on land cost as per the existing the current marginal cost of funds based lending rate (MCLR) of State Bank of India (SBI).

The interest rates on group housing rates would often go up to 15-23% after the authorities levied more interest on late payments. Developers had moved the apex court demanding lower interest rates claiming that high rate of interest would render their realty projects non-profitable.

The authority also approved a decision to allow set up the restaurant and other commercial space at the rooftop of the Botanical Garden multi level car parking facility in sector 38A, and developing two higher secondary schools.