YEIDA has announced two policies aimed at revitalizing stalled projects

The Yamuna Expressway Industrial Development Authority (YEIDA) has rolled out two policies in order to revive Noida‘s stalled projects. Both the policies are directing restoration or reschedule of the stalled projects. The meeting of the YEIDA board was held on June 28 regarding this.

To revive stalled projects in the region, construction companies may benefit from both the policies by August 31.

What are the policies?

Let us discuss the points cited regarding the policies as per the notification after the YEIDA board meeting :

• Regarding reschedule policy: In this case, 5% of the due amount will need to be paid upfront by the builder. And after restructured payment schedule has been offered, the remaining 5% must be paid within 30 days. The critical point is that the lease termination will occur if three installments are not being paid or missed after availing of rescheduling.
• Regarding restoration policy: There will be a restoration charge at the rate of 10% of the plot premium. And as part of the restoration process, a developer will need to pay 10% of the current land premium to the authority.

One more important point discussed was – a plot cannot be transferred before the allottee has obtained the completion certificate.

Also, the payment would be required prior to the next board meeting for the decision to be made on the restoration of the plot.

Arun Vir Singh, the CEO of YEIDA, said development and construction companies would have to pay a certain upfront fee. When the minimum amount is received, the application will be processed, and a revised payment schedule will be offered.

Greater Noida and Dankaur areas are already filled with a lot of builders, along with industrial development taking place around the area. Many builders have bought the land from YEIDA to build high-rise buildings here. But many builders out there were not able to clear their dues. And all these upcoming notices will impact those builders.

YEIDA has taken some of the most significant decisions this time. However, as per officials, they need to focus on every issue that comes along the way after these notices.

One senior YEIDA official said that the government also plays an important role here. The official pointed a few issues and noted that there is no way they can resolve these issues without the state’s directive. These are legacy issues. All these old issues might affect the revenue projections and collections, and it’s important to keep the government in the loop about all those issues.

Hope YEIDA will be able to revitalize stalled projects along with the assistance of the government.

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