Noida directs government bodies to repay loans
The Noida authority loaned Yamuna Expressway Industrial Development Authority (YEIDA) Rs1,200 crore, Greater Noida authority Rs3,500 crore, UPSIDC Rs450crore, Agra development authority Rs60 crore and UPPCL, Rs300 crore.noida Updated: Jun 21, 2017 22:28 IST
Noida authority’s chief executive officer (CEO) Amit Mohan Prasad has directed its finance department to issue notices to government bodies that are failing to repay loans.
The authority is to collect around Rs5,500 crore principal amount from government bodies. The Noida authority loaned Yamuna Expressway Industrial Development Authority (YEIDA) Rs1,200 crore, Greater Noida authority Rs3,500 crore, UPSIDC Rs450crore, Agra development authority Rs60 crore and UPPCL, Rs300 crore.
The authority is now finding it tough to recover its money from these government bodies, most of which are facing a funds crunch. The Noida authority is also facing a shortage of funds as realtors have failed to clear land dues of around Rs25,000 crore due to a slowdown in the realty sector.
As per the policy that was in effect in 2006, builders were required to pay only 10% of the total cost of the land bought from the authority; the rest was to be paid in instalments. However, many of these builders have turned defaulters, leaving the authority in financial straits and homebuyers worried.
“We need funds for infrastructure as well as other development projects. Noida does not have funds to implement many schemes,” said Prasad.
Authority officials have also written to the principal secretary of industrial development department on the issue.
“These government bodies are neither paying the principal amount nor the interest for many years now. The Noida authority had loaned the money on an interest of 9.5-10.5%, depending on the agreement signed then,” a Noida authority official said.
YEIDA officials, in June 2016, had demanded an additional loan of Rs250 crore from the Noida authority.
“We refused to provide an additional loan to YEIDA last year because it had not been paying interest and failed to clear the principal amount of the previous loan. Now, we have decided not to provide a loan to any government body because the authority is facing a funds crunch,” an authority official said.
Amid the financial crisis, the Noida authority has postponed its ambitious metro project that was supposed to connect Noida’s Sector 71/51 area with Greater Noida’s Knowledge Park-IV. The project was proposed to provide metro connectivity to pockets of Noida and Greater Noida, in areas where commute options are limited.