The Yamuna Expressway Industrial Development Authority (Yeida) on Thursday said it has signed a memorandum of understanding (MoU) with the Housing and Urban Development Corporation (Hudco) for the latter to work as a consultant and also help in arranging funds to spend on land acquisition.
Hudco, which is a central government PSU, will guide Yeida on executing developmental projects and help expedite the mega urbanization plans in the catchment area of the Noida greenfield international airport along the Yamuna Expressway.
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โWe have signed an agreement with Hudco to arrange financing for land acquisition for multiple mega projects. This MoU paves the way for this agency to work as a consultant for planning and executing these mega projects. We need Hudcoโs support for developing the industrial area, which has been planned in the catchment area of the airport. As the airport is scheduled to become operational by end of 2024, we are flooded with proposals from global and domestic investors for land to set up businesses. To make that happen in a timebound manner, we need expert consultancy services,โ said Arun Vir Singh, chief executive officer, Yeida.
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As part of the MoU, Yeida and Hudco have also agreed to develop a habitat centre on 25 acres and a convention centre on 15 acres near the Noida airport. These projects will be executed on a public private partnership (PPP) basis in collaboration with NBCC India. Officials confirmed that Hudco will extend a loan over the next five years, aligning with Yeidaโs land acquisition plan, at a competitive interest rate.
โThere is a need for a habitat centre and a convention centre in this region. This project will be completed in the next three years. Apart from that, Hudco and Yeida will work together on multiple other projects,โ said Singh.
Yeida needs โน14,000 crore for acquiring 6,000 hectares from 40 villages over the next five years. The authority has already obtained โน3,300 crore interest-free loans from different government bodies that include National Capital Region Planning Board and Uttar Pradesh government, among others.
As a precondition to obtain required funds from the state bodies, Yeida needs to arrange and contribute an equal amount towards land acquisition. To arrange that amount, Yeida has sought a loan from Hudco, said officials.
Yeida aims to spend around โน63,500 crore on developing roads, sewers, parks, and electricity infra so that the urban centre on 6,000 hectares can be developed in the future. โWe will acquire land from 40 villages, including direct purchase from farmers who are willing to give up their land,โ said Singh.
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โHudco is ready to provide us a loan at a nominal interest rate. It is one of the few financial institutions that offer loans for land acquisition, as banks typically do not extend loans for that purpose. An agreement has also been reached for Hudco to manage the issuance of infrastructure and municipal bonds on behalf of the authority,โ said Singh.
