Ready corpus for Jewar airport, UP government tells authorities
The cash-rich Noida authority and the UP government will both have a stake of 37.5% each in the company which has been created for the airport project scheduled to come up at Jewar. The Greater Noida authority and the Yeida will have a stake of 12.5% each.Updated: Nov 05, 2018 15:30 IST
The Uttar Pradesh government has directed the Noida authority, the Greater Noida authority and the Yamuna Expressway industrial development authority (Yeida) to provide necessary funds for the airport project scheduled to come up at Jewar.
UP chief secretary Anup Chandra Pandey, in a meeting held in Lucknow on Friday, directed the respective chief executive officers (CEO) of these authorities to expedite the work on the project. He also directed the CEOs to provide funds for the project.
The state government had approved the Noida international airport limited (NIAL), an agency working as a special purpose vehicle and supervise the airport development. Yeida CEO Arun Vir Singh has been functioning as the CEO of the NIAL as well. The cash-rich Noida authority and the state government will both have a stake of 37.5% each in the company while the Greater Noida authority and the Yeida will have a stake of 12.5% each.
Correspondingly, the Noida authority needs to provide Rs1,500 crore funds. The Greater Noida authority and the Yeida need to provide Rs 500 crore each as contribution towards the project. The state government’s share of Rs 1,500 crore is scheduled to come later.
“The three authorities have been asked to provide their respective contributions by December-end as we need funds to pay compensation to farmers whose land is to be acquired for the airport. We need funds for other purposes as well,” Singh said.
The Greater Noida authority and the Yeida, which are facing a fund crunch amid slowdown in the realty sector, are struggling to arrange necessary funds, said officials.
“We are facing a bit of a problem due to financial crisis but we will manage to arrange the funds on time. Since the airport project is on top priority, we will arrange for our contribution of Rs 500 crore very soon,” Narendra Bhooshan, CEO of the Greater Noida authority, said.
The estimated budget for project is Rs 15,000-Rs 20,000 crore. It also requires 5,000 hectare of land. The project had first been proposed by then UP chief minister Rajnath Singh in 2001, with an aim to boost local economy and create jobs by setting industries near the civil aviation hub.
“The chief secretary has directed officials of three authorities to fast track the airport project. The land acquisition process has already started and a notification under Section 11 has been issued,” Dhirendra Singh, member of Legislative Assembly, Jewar constituency, said.
First Published: Nov 05, 2018 15:30 IST