GNIDA pocketed Huge Profits by selling Land at Rs 11000 per Sq Metre
According to the master plan for Greater Noida, 23.2% of the total area of 21,570 hectares earmarked for the township is meant for residential purposes. Of the rest, 19.6% is for industries, 16.2% for institutions and 5.6% for commercial development. The price for industrial and institutional land was subsidized by selling commercial land at Rs 22,000 per sq metre.
The Greater Noida Authority spent Rs 1,485 per sq metre on internal development that includes internal and sector roads, sewers and drains, water supply system, electrification and street lights, and parks and horticulture. In 2010-11, the Authority paid Rs 930 per sq metre for the land while giving back 6% of it to farmers. It claims to have spent an additional Rs 5,113 per sq metre under other heads. Of this, it put in Rs 4,641 per sq metre on developmental works alone.
The total cost of the land, including interest, came to Rs 6,043.13, according to an official document released by the authority. But as only 55% of the total land is available for sale and the rest is used in developing roads, sewerage, parks, schools, hospitals etc, the net cost of saleable land came to Rs 10,987.52. Against this, the Authority sold the land at Rs 11,000 per sq metre.
Countering the general perception that the Greater Noida Authority has pocketed huge profits by buying land at Rs 1,000 per sq metre from farmers and selling it to private builders at Rs 11,000 per sq metre, the Authority has claimed it sold land for residential projects at a no-profit, no-loss principle after spending heavily in developing the area.
A senior official said the Authority is a government body and has to submit its accounts every year to the government. The accounts are available on its website. “Had we bought land at Rs 1,000 per sq metre and sold it at Rs 11,000, we would have been the richest organization in the state by now. But the fact is we have a debt of Rs 3,500 crore as of today, which we had taken to implement projects. The debt would be repaid after we sell the land.”
The Authority also claims to have spent Rs 764 per sq metre on external development, which includes main roads and main sewerages that connect the area with other areas.Another expense under this head was on laying a supply system to bring water to the area from outside. Because of these investments, Noida and Greater Noida buyers don’t have to pay external development charges, the Authority pointed out.
External development charges, GNIDA Noida, Greater Noida, Greater Noida Authority, Private builders, Residential projects
