The Greater Noida authority is facing financial challenges, needing to repay a loan of around ₹5,000 crore to various banks and the Noida authority.
Loan History and Compensation
Over the past decade, the authority borrowed ₹6,000 crore to provide additional compensation of 64.7% to farmers for acquired land. This month, it paid ₹1,100 crore to HDFC and Bank of Baroda, with ₹4,900 crore still outstanding.
Revenue Generation Strategies
To settle remaining dues, the authority is selling land for industrial and commercial use through different schemes. Chief Executive Officer Ravikumar NG mentions a monthly payment plan of ₹10 crore to Noida authority for their ₹2,900 crore loan.
Historical Debt and Recent Payments
In 2009, Greater Noida took a ₹3,785.95 crore loan from Noida authority. Until 2020, the debt persisted due to a real estate slowdown. In 2022, payments began, driven by revenue from the upcoming Noida airport in Jewar.
Financial Investments and Future Plans
The authority invested ₹1,500 crore in fixed deposits with a 7.85% annual interest rate. Additionally, ₹1,000 crore is invested in Union Bank of India, and ₹500 crore in Bank of Baroda. More plot schemes for industrial and commercial use are expected this year to boost revenue.
Infrastructure Development and Revenue Boost
New industrial sectors, including Ecotech Extension 1-8, are being developed. With the Noida airport operational by 2024-end, demand for industrial land is rising, aiding revenue collection.
State Proposal and Recent Dues Payment
In 2020, Noida authority suggested land transfer in lieu of dues, but the proposal was rejected. Since then, Greater Noida authority has paid around ₹900 crore in dues.
