YEIDA wants interest rate cut

NOIDA: The Yamuna Expressway Industrial Development Authority (YEIDA) has requested the Noida Authority to lower the interest rate on the amount of around Rs 1,100 crore which YEIDA owes to the Noida Authority.

Prabhat Kumar, commissioner, Meerut mandal and the chairman of the YEIDA, has written to the CEO of Noida Authority Alok Tandon, asking him to consider lowering the interest rate keeping in mind the rate of interest on loans being taken by the banks.

YEIDA general manager (finance) B N Jha told TOI that YEIDA has requested Noida Authority to lower the rate of interest for payment of outstanding dues as banks are also charging the same rate of interest now.

"We are being charged at a rate of interest of around 8.7%. Hence, we are requesting Noida Authority to charge us around the same figure," he said.

The cash-strapped YEIDA owes around Rs 1,100 crore to the Noida Authority, while the amount to be paid to the banks is around Rs 1,300 crore. Earlier, the rate of interest was lowered by Noida from 10.5% to 9.75% Now, the chairman has asked Noida to further lower the rate of interest to 8.5%.

The loan was taken for land acquisition process and various development-related work.