Noida May Have Municipal Corporation Soon, Yogi Govt's Big Plan

Noida: The Uttar Pradesh Industries Department has reportedly prepared a proposal recommending the creation of a metropolitan corporation in Noida and placed it before the state council of ministers for consideration. This move could significantly alter the city’s governance structure, if approved.

The proposal follows directions issued by the Supreme Court in August last year, which asked the state government to examine reforms in Noida’s governance framework. The court’s intervention came after a report submitted by a state-appointed Special Investigation Team (SIT) probing irregularities linked to land compensation matters involving the Noida Authority.

According to reports, the industries department said that Noida was established as a planned industrial, residential and commercial hub aimed at attracting investment, promoting entrepreneurship and generating employment through integrated urban development and modern infrastructure. However, the department also warned that restructuring the governance model by introducing a metropolitan corporation could potentially affect investor sentiment, given Noida’s importance as a key destination for foreign investment in Uttar Pradesh.

Officials reportedly pointed out that the prevalent Industrial Area Development Act leaves no scope for the existence of an elected civic body in industrial townships, implying legislative amendments would be required if the Supreme Court’s directions are to be implemented. The note recommends that the cabinet first take an in-principle decision on forming a metropolitan corporation to enhance transparency and citizen participation in urban governance.

According to sources, departments consulted on the proposal, including urban development, revenue, planning and housing, largely raised no objections, leaving the final policy decision to the cabinet. The law department flagged constitutional and statutory challenges, stating that under Article 243Q of the Constitution, municipalities are not mandatory in industrial townships. Besides, it was also brought to notice that a 2001 amendment incorporating Section 12-A into the 1976 Act bars the formation of panchayats in such areas.

The finance department has reportedly clarified that any expenditure arising from the establishment of a metropolitan corporation would be borne by the Noida Authority itself, without imposing any additional financial burden on the state exchequer. The apex court’s directive came after the SIT’s critical assessment of the way the Noida Authority has been functioning. The investigation brought to light weak oversight mechanisms and land allotment practices that allegedly favoured builders, while transparency remained limited.

With Noida’s land bank steadily shrinking amid rapid urbanisation, the SIT argued that the city requires a new governance and urban management framework capable of delivering better civic services, including waste management, public transport and infrastructure maintenance. The SIT suggested replacing the current administrative model with a metropolitan corporation incorporating elected ward representatives, ensuring greater accountability and citizen participation in local decision-making.  Following these recommendations, a bench led by Justices Surya Kant and Joymalya Bagchi instructed the Uttar Pradesh chief secretary to place the SIT report before the council of ministers to enable a policy decision. Following departmental consultations, Industrial Development Minister Nand Gopal Gupta Nandi approved forwarding the note to the cabinet for further consideration.

If approved, the move could be the first major overhaul in Noida’s governance structure since its establishment nearly five decades ago, potentially shifting the city from an authority-driven administrative system to an elected metropolitan framework.

Noida is presently administered by the New Okhla Industrial Development Authority (NOIDA), established in 1976 under the Uttar Pradesh Industrial Area Development Act as an industrial township. Unlike most large urban centres,  Noida does not have a municipal corporation, with civic, planning and development functions concentrated entirely within the authority.

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