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Noida Authority Announces Budget For 2018-19, Focuses On Infrastructure

Noida Authority Announces Budget For 2018-19, Focuses On Infrastructure

Noida Authority Announces Budget For 2018-19, Focuses On Infrastructure
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The Noida authority has announced a budget of Rs 4,350.11 crore for the financial year 2018-19. With a substantial reduction of Rs 3,720 crore from the last fiscal’s total of Rs 8,070 crore, the civic body has decided to be thrifty with its spending this year. he rationale behind the slashed allocation was that the estimated amount does not get spent fully and a major portion remains unspent. Alok Tandon, the chairman and chief executive officer, presented the budget at the authority’s 193rd board meeting on April 26.

Here are the major highlights of the budget:

Infrastructure gets the bigger chunk

With the completion of Noida-Greater Noida Metro link, underpasses and road projects in the pipeline, it is the infrastructure segment that received a huge sum of Rs 2,000 crore.

To ease commuting between east Delhi and Noida, the authority is building a 5.5-km long elevated road at a cost of Rs 650 crore for decongesting the existing 2-km Delhi-Noida link road. The road will connect the Chilla area in Mayur Vihar-I and Noida expressway and will run above the Shahdara drain. It will be a signal-free road between Noida and Kalindi Kunj. Although the drain passes through the sectors 14, 14A, 15, 15A, 16, 16A and 38A of Noida, it comes under the jurisdiction of the Delhi government and approval will be taken before the construction. Proposed in 2012, the project could not start earlier as clearance was not given. As per media reports, the Uttar Pradesh State Bridge Corporation Limited wants to take up the project. The state public works department will bear about 50 per cent of the total cost if the project is allotted without any tenders.

 Other key highlights

The authority aims to garner revenue worth Rs 4,337.3 crore through lease rent, property transfer fee, land sale, builder land dues, water bills, etc. With this projection, it is looking forward to having a surplus of Rs 37.19 crore. The allocation for land acquisition is Rs 450 crore. An amount of Rs 80 crore has been set for capital expenditure involving purchase of machinery, etc. A total of Rs 1,000 crore and Rs 20.11 crore has been allotted for the maintenance of civic facilities and other miscellaneous expenditure, respectively.

About Rs 800 crore has been given for urban services which will also include provision of facilities for the 82 villages of the city. Although the village community is not happy as separate allocation has not been made for the development of villages. In the financial year 2016-17 and 2017-18, the allocation for development of rural areas was Rs 100 crore and Rs 158 crore, respectively.

The authority has also taken a slew of decisions:

  • Hike in one-time lease rent: With effect from August 1, 2018, property owners applying for payment of one-time lease rent will have to pay as per the revised rate of 15 percent. That is, they will deposit the rent for a period of 15 years. Till then, the applicants can deposit the rent as per the earlier rate of 11 per cent, that is for 11 years. The authority announced that the annual lease rent for residential properties will be 1 per cent of the property cost while it will be 2.5 per cent of the cost for commercial properties.
  • Guidelines for renting out plots: If you own a commercial land or industrial plot with an area of 2000 sqm or above, you can rent out to only one tenant per 500 sqm. A piece of such as a land can be rented out to two tenants from 500 sqm to 2,000 sqm. IT and IT-enabled service plots will be governed by policies meant for industrial plots.
  • Paying Guest Policy: The authority will allow paying guest houses on corner residential plots where the road should be at least 18-metre wide. PG houses will also be allowed on 50 per cent of the residential plots in Noida. Owners of plots will need to pay a mixed land-use fee if they wish to run paying guest services and residential owners will need to seek a license. There are many PG facilities operating illegally in the city that lead to problems in parking and civic services. Regularising them through licenses will not only benefit the residents but also bring added revenue for the authority.
Last Updated: Mon Apr 30 2018

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