Noida Airport: Yeida employs Hudco as consultant for fund management and urbanisation plans

By Bricksnwall | 2024-08-23

As part of the MoU, Yeida and Hudco have also committed to create a 25-acre habitat centre and a 15-acre convention facility near the Noida airport.

The Yamuna Expressway Industrial Development Authority (Yeida) announced on Thursday that it has signed a memorandum of understanding (MoU) with the Housing and Urban Development Corporation (Hudco) to hire the latter as a consultant and assist in obtaining financing for land acquisition.

Hudco, a central government PSU, would advise Yeida on development projects and aid speed mega-urbanisation plans in the catchment area of the Noida Greenfield International Airport along the Yamuna Expressway.

"We have reached an arrangement with Hudco to provide financing for land purchase for several megaprojects. This Memorandum of Understanding allows this agency to serve as a consultant in the development and execution of major megaprojects. We need Hudco's help to develop the industrial area planned for the airport's catchment region. As the airport is expected to be operational by the end of 2024, we are inundated with bids from global and domestic investors seeking space to establish enterprises. To accomplish this in a timely manner, we require skilled advisory services', stated Arun Vir Singh, Yeida CEO.

As part of the MoU, Yeida and Hudco have agreed to build a 25-acre habitat centre and a 15-acre convention centre near Noida International Airport. These projects will be carried out as a public-private partnership (PPP) in collaboration with NBCC India. Officials stated that Hudco will renew a loan at a competitive interest rate for the next five years, in line with Yeida's land acquisition plan.

This region need a habitat centre as well as a convention centre. This project will be completed within the next three years. Aside from that, Hudco and Yeida will collaborate on several additional initiatives," Singh stated.

Yeida requires ₹14,000 crore to acquire 6,000 hectares from 40 villages throughout the next five years. The authority has already acquired ₹3,300 crore in interest-free loans from several government entities, including the National Capital Region Planning Board and the Uttar Pradesh government.

As a prerequisite for receiving the necessary funding from state bodies, Yeida must arrange and donate an equal amount to land acquisition. According to officials, Yeida has asked Hudco for a loan to cover the cost.

Yeida plans to invest approximately ₹63,500 crore in infrastructure development, including roads, sewerage, parks, and power, to support the future development of the 6,000-hectare urban centre. "We will acquire land from 40 villages, including direct purchase from farmers who are willing to give up their land," Singh informed us.

"Hudco is willing to offer us a loan at a low interest rate. It is one of the few financial firms that provides loans for land acquisition, while banks normally do not do so. "Hudco has also agreed to manage the issuance of infrastructure and municipal bonds on behalf of the authority," Singh stated.

Source: Hindustan Times