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The Noida Authority has launched a INR 400 crore dedicated corpus fund to support the city's municipal services amid concerns about declining revenue from land sales and lease rent. Currently spending INR 1,500 crore annually on civic upkeep, the Authority aims to create a financial buffer for long-term sustainability. The fund will be built using one-time lease rent payments from property owners and was approved by the Noida Board on March 28. With rising urban costs and limited land inventory, officials say the move ensures uninterrupted services like sanitation and lighting-serving as a model for other Indian cities facing similar fiscal challenges.
The Noida Authority has approved the creation of a dedicated corpus fund to support the city's municipal operations, as officials raise concerns about the sustainability of existing revenue sources. The fund is meant to ensure that the city's maintenance and civic services continue smoothly in the long run, especially when land sales and lease rent collections start drying up. Advertisement
Currently, Noida Authority spends around INR 1,500 crore annually on municipal services such as sanitation, street lighting, and maintenance of public spaces. This money mostly comes from the sale of land plots and lease rent from residential, commercial, and industrial properties.
To kickstart the fund, Noida Authority has transferred INR 400 crore collected through one-time lease rent payments from various property owners during FY2024-25. Property owners in Noida are allowed to pay their lease rent in one go instead of annual payments, and this amount will now be parked in the new municipal fund.
The proposal for the corpus was cleared by Noida Authority CEO and later approved by the Noida Board, chaired by Uttar Pradesh Chief Secretary Manoj Kumar Singh, on March 28. Officials said the fund will act as a financial safety net for the city's municipal operations.
As Noida's population continues to grow and infrastructure expands, the demand for reliable civic services will increase. Officials estimate that the current INR 1,500 crore yearly cost will rise in the coming years. Having a fund in place ensures there is a fallback mechanism when regular income sources taper off.
Urban finance experts say that other city bodies across India may soon need similar strategies. With limited land parcels left for sale and rising costs of urban upkeep, municipal authorities in cities like Gurugram, Navi Mumbai, and Ahmedabad are also exploring ways to create long-term financial buffers.
With the creation of this dedicated fund, Noida is taking early steps to ensure uninterrupted civic services-even when traditional income sources dry up in the years ahead.
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