Yeida seeks ₹14,000 crore from Hudco for acquiring 6,000 hectares
Yeida and HUDCO are likely to sign the MoU next Wednesday next in Delhi before they start working on the project, said officials.
The Yamuna Expressway Industrial Development Authority (Yeida) on Friday said it has decided to sign a memorandum of understanding (MoU) with the Housing and Urban Development Corporation (HUDCO) to seek ₹14,000 crore required for the acquisition of 6,000 hectares from 40 villages over the next five years.
HUDCO chairman and managing director Sanjay Kulshrestha and executive director (Delhi) SK Solanki on Friday met Yeida officials to discuss the proposal, said officials.
Yeida and HUDCO are likely to sign the MOU next Wednesday next in Delhi before they start working on the project, said officials.
In order to arrange the adequate finance, Yeida has already obtained ₹3,300 crore interest-free loans from the different government bodies that include the National Capital Region Planning Board and Uttar Pradesh government, among others.
As per the pre-condition to obtain required funds from the state government bodies, Yeida needs to contribute an equal amount towards land acquisition. Therefore, Yeida is seeking to arrange funds as a loan from HUDCO, said officials.
“HUDCO will help us in arranging the required funds and also be a consultant because it has huge experience and expertise in infrastructure planning and sector design. HUDCO will manage the issuance of infrastructure and municipal bonds on behalf of Yamuna authority,” said Arun Vir Singh, chief executive officer, Yeida.
Yeida aims to spend around ₹63,500 crore on developing basic amenities such as roads, sewers, parks, and electricity in the urban centre to be developed on 6,000 hectares.
“We will acquire land of 40 villages through different methods, including direct purchase from farmers and also by acquisition as per the rules,” said Singh.
“HUDCO is ready to provide us with the loan at a minimum interest rate. HUDCO is one of the few financial institutions that offer loans for land acquisition, as banks typically do not extend loans for this purpose. An agreement has also been reached for HUDCO to manage the issuance of infrastructure and municipal bonds on behalf of the authority. The acquired land will be utilised to develop new sectors,” said Singh.
HUDCO will also assist in preparing tender documents for contractors.
“We aim to complete its multimodal connectivity projects, such as rapid rail and light rail and to develop its existing and upcoming industrial sectors through the issuance of municipal bonds. And for that we need expert guidance from the HUDCO,” said Singh.
Yeida said it will use the land for setting up new sectors, civic amenities and industrial cities. Of the total 6,065 hectares, 1,609 will be purchased directly from farmers through mutual agreement, 4,076 will be acquired through land acquisition process and 3,80 hectares of land will be reclaimed as this is government land.
Yeida will acquire the land from 40 villages including Rabupura (994 hectares), Tirthali (479 hectares), Karauli Bangar (250 hectares), Muradgarhi (336 hectares), Tappal-Bajna (771 hectares), Mudrah (290 hectares) and Kallupura (218 hectares), Mayana (252 hectares) among others.
The land will be used for setting up new sectors including 5, 6, 7, 8, 9, 10, 11, besides acquiring remaining areas for 22E, 28, 29, 32, 33. Apart from this 712 land will be acquired for Tappal-Bajna urban centre and 528 hectares in two villages (Dorpuri and Syarol) for a logistic park.
The process to acquire land from four out of six villages is already under process in Sector 10, and the proposals for acquiring land in Tappal-Bajna, and for sectors like 5,6, 7 and 8 have been sent to the government, said officials.