Noida seeks land in lieu of dues from Greater Noida, YEIDA
The Noida authority chief executive officer Alok Tandon has given this suggestion to the UP government after it failed to recover dues despite repeated notices issued to the two authorities in the past.noida Updated: Jan 16, 2018 22:47 IST
The cash-strapped Greater Noida and the Yamuna Expressway industrial development authorities can give its undeveloped land to clear dues of Rs 3,785.95 crore and Rs 1,347.09 crore, respectively, to the lender— Noida authority, a top official has suggested to the state government.
The Noida authority chief executive officer Alok Tandon has given this suggestion to the UP government after it failed to recover dues despite repeated notices issued to the two authorities in the past.
Tandon has written to the industrial and infrastructure development commissioner of Uttar Pradesh, suggesting him that the two authorities should hand over the land in lieu of dues.
The Noida authority in 2009 started giving a loan to the Yamuna authority that did not have funds for infrastructure and development projects. Since then, the YEIDA kept taking loans from the Noida authority instalments. At present, it owes Rs 1,347.09 crore.
The Noida authority charges a 9.7% interest on this debt. Similarly, the Greater Noida has failed to pay back Rs 3,785.95 crore to the Noida authority citing a slowdown in the realty sector.
“I wrote to the state government on January 15 for an appropriate decision on the issue. If they hand over the land located next to our jurisdiction, along Yamuna Expressway, then the Noida authority can use this land for various projects that include residential, commercial, mixed-land use or industrial, depending upon the requirement,” Tandon said.
The Noida authority had signed a memorandum of understanding with the two authorities with the riders that they will keep paying interest in instalments. But the two authorities have stopped paying interest and also the principal amount despite multiple reminders, officials said.
“On December 31, 2017, the authority brought the issue to the notice of the government for suitable decision. Now, let’s see what decision the government will take,” Tandon said.
The Greater Noida authority is unable to recover around Rs 4,000 crore from 203 builders and the YEIDA has failed to recover approximately Rs 5,000 crore from 28 builders. The financial condition of the Noida authority is also not that good as it struggles to recover around Rs 11,000 crore from 94 builders due to a slowdown in the realty sector.
The Noida authority officials hope that if the two authorities hand over land, they can launch new schemes and recover dues which will help improve the authority’s financial health.