NOIDA: The Noida authority in its board meeting held on Saturday approved a proposal to create a dedicated “corpus fund” to properly run the civic services, said officials on Sunday.
The approval came as the Authority decided not to remain dependent any longer on land sale revenue for the city’s maintenance and operating public facilities, said officials.
“The corpus fund will help us in maintaining the city’s civic services,” said Krishna Karunesh, chief executive officer of the Noida authority, in a statement.
Official said that this fund is hoped to become a big support for the maintenance of the city’s roads, parks, sewers, water and resources related to public health in future.
About the source of such a big fund, officials said that a part of this corpus fund will come as interest earned from a fixed deposit (FD) of around ₹10,000 crore. Besides, the other two revenue streams will be lease rent and property transfer fees levied at the time of transfer of property.
“Maintaining the city of Noida is going to be a major challenge for the Authority in the coming years. Due to the shortage of land, launching new schemes is becoming difficult, which means the income from allotments is on the verge of stopping in future. To deal with this crisis, the Noida authority has prepared a visionary and sustainable plan,” said a Noida authority official not authorised to speak to media.
An FD of ₹10,000 crore has been kept secured in different banks and its interest will be used for the development works of the city, said officials.
The Authority gets about ₹300 crore annually as lease rent from different properties. This is charged at 1 to 2.5 per cent per annum on different properties, while for a one-time payment for 90 years, it goes up to 15 times. This entire amount will be contributed to build the corpus fund, they added.
Also, when a leasehold property is sold in the Authority area, a certain amount is received by the Authority as transfer charges. It is also a major source of revenue, and this will also be now contributed towards the corpus fund, said officials.