Lack Of Funds Hinders Growth In Noida, Greater Noida
It seems the sluggishness in the real estate sector has put in a lot of pressure on development bodies. According to a recent media report, Noida and Greater Noida authorities are not taking up any new infrastructure development plan due to a shortage of funds. The real estate developers of Noida, Noida Extension and Greater Noida have outstanding dues of Rs 20,000 crore that they owe to the two authorities. However, slump-hit developers are finding it hard to clear the dues.
Currently, there are two big-ticket infrastructure projects in Noida which have been making the news. The Noida-Greater Noida 29-km Metro link and the Noida City-Centre-Sector 62 Metro extension are expected to get operational by April 2018. The authority officials said the authority is focusing on these projects before taking up any new one.
Before state polls, the former Akhilesh Yadav-led Uttar Pradesh government approved two Metro links in December 2016, which have been put on hold for now due to the funding shortage. The project proposed would provide connectivity to the interior regions of Noida through a Metro link from Noida Sector 71 to Greater Noida's Knowledge Park-V and Botanical Garden to Sector 142, Noida.
The suspended project list also include a proposed heliport near the Gautam Buddh University and a 31-acre convention centre, both of them were approved by previous state government.
With the decision to put projects on hold, prospective buyers are also left confused. According to one of the local residents of the area, few sectors in Noida Extension where homes are almost ready and due for possession lack infrastructure and amenities such as streetlights, roads, security, water connections and power supply. This will be further delaying the handover as the occupancy certificate won't be made available until the basic infrastructure is in place. According to an earlier report published by developers' body CREDAI, over 50,000 flats are pending deliveries due to lack of basic amenities, out of which 10,000 are ready for possession.
While authorities say that starting a project with limited funds and then suspending it might result in speculations in property prices and artificial bubble, a complete halt in new development might also affect the realty market negatively as prices tend to get stabilised.
The only way out is developers clearing their dues. As the real estate transactions in Noida have started gaining momentum after demonetisation, the stuck projects are expected to get delivered by December 2017, as decided in a meeting held between Noida Authority Chief Executive Officer Amit Mohan Prasad, Noida developers and group of homebuyers.
The state government is yet to notify the final rules under the Real Estate (Regulation & Development) Act, 2016. However, meetings are being held by various state ministries to address the grievances of the buyers and bring all parties in consensus.
One will have to wait and watch to see what will the final outcome of all the efforts being made by the new government.