Swedish furniture giant IKEA has expressed the desire to open its first Delhi-NCR store in Noida. On Wednesday, Uttar Pradesh chief minister Yogi Adityanath signed a memorandum of understanding (MOU) with the company for an investment of Rs 5,000 crore. The MOU was signed in Lucknow in the presence of top officials from the state government and IKEA.

“IKEA will invest Rs 5,000 crore as the firm wants to open a retail outlet in Noida. The project is expected to create 4,000 direct and 4,000 indirect jobs with opening up of the store,” said RK Singh, principal secretary, UP infrastructure and industrial development department.

IKEA has been looking for a suitable land for its retail outlet in the NCR for the past two years. However, it has failed to find the required land for the project. In 2016 too, the company had signed an MOU and looked for the land in Sectors 94 and 72 in Noida. But the plan could not materialise.

“Uttar Pradesh is an important market for us and we are in dialogue with the present government to facilitate our expansion plans in the state. Our long-term intent is to partner with the state towards creating world class retail and commercial parks comprising of shopping centres, offices and integrated commercial projects,” said an IKEA spokesperson.

“In line with our new retail direction, we intend to set up a mix of large and smaller city centre format stores complimented by e-commerce in the state over time. The immediate plan is to set-up a large format IKEA store in Noida where we are exploring opportunity for suitable land purchase,” said the spokesperson.

After having signed the MOU, IKEA will apply for the land in Noida.

“We will allot the land to IKEA following laid down procedures of the land allotment,” said Alok Tandon, chief executive officer of the Noida authority.

First Published: Dec 20, 2018 15:49 IST