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Updated January 29th, 2024 at 07:26 IST

Greater Noida Authority Settles Rs 1100 Cr Debt with Banks, Faces Pending Rs 5000 Cr Dues

Faced with a Rs 5000cr debt, G Noida is selling land after repaying Rs 1,100cr this month, aiming to settle dues through monthly payments and increased revenue

Reported by: Digital Desk
Greater Noida Industrial Development Authority
Greater Noida Industrial Development Authority | Image:neogeoinfo
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Delhi-NCR: The Greater Noida authority is taking steps to improve its financial situation, faced with the challenge of repaying a loan of Rs 5,000 crore to various banks and the Noida authority. Officials from the Greater Noida authority mentioned that in the last decade, they took a loan of Rs 6,000 crore from banks and the Noida authority to provide additional compensation of 64.7 percent for land acquired from farmers,  as per initial reports. This month, they paid Rs 1,100 crore to HDFC and Bank of Baroda, leaving Rs 4,900 crore to be paid.

To raise revenue and settle the remaining dues, the authority is selling land through different schemes for industrial and commercial use. The Chief Executive Officer, Ravikumar NG, stated that they have decided to pay Rs 10 crore monthly to the Noida authority to help them repay a Rs 2,900 crore loan.

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Land Sales and Loan Repayment Strategy

In 2009, Greater Noida borrowed Rs 3,785.95 crore from the Noida authority to pay increased compensation to farmers and for other purposes. Until 2020, Greater Noida struggled to pay off the dues, citing a slowdown in the real estate sector. However, in 2022, they began repaying the debt as the greenfield Noida airport in Jewar boosted growth, increasing revenue from land sales.

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Ravikumar NG mentioned that they aim to eliminate the loan by increasing revenue collection. The authority has also invested Rs 1,500 crore in fixed deposits in banks with an annual interest of 7.85 percent. Rs 1,000 crore is invested in Union Bank of India, and Rs 500 crore in Bank of Baroda.

Investments and Revenue Plans

The Greater Noida authority plans to introduce more plot schemes for industrial, commercial, and other uses this year to raise revenue. While the launch dates are yet to be decided, officials confirm that all formalities for these schemes have been completed.

The authority is developing new industrial sectors, including Ecotech Extension 1, 2, 3, 4, 5, 6, 7, and 8, to provide land to industrial units. The demand for industrial and other categories of land is expected to rise with the Noida airport beginning operations in late 2024, contributing to increased revenue.

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In 2020, the Noida authority suggested to the state government that the Greater Noida authority could hand over its land in lieu of dues, but the proposal was later rejected. Since then, the Greater Noida authority has paid around Rs 900 crore in dues, according to officials.

 

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Published January 29th, 2024 at 07:26 IST

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