IKEA Noida project to resume soon as UP govt resolves land issues: Report

Uttar Pradesh government on November 25 said it has resolved issues with global furniture major IKEA, and the company can begin work on its Noida project this week. The deal for the store-cum-commercial complex on an 11.8 acre land in Noida’s Sector 51 was signed in 2018 but had been stuck due to land cost payments.

UP Industries Minister Satish Mahana said the land issues have “all been cleared” and the Noida Authority had been directed to ensure quick handover of land to the company. He added that IKEA is committed to finishing the project by 2025, The Times of India reported.

IKEA India CEO Peter Betzel said the Noida store is part of the company’s immediate plan. “The store will have an estimated investment of Rs 1,000 crore and will employ 1,000 co-workers directly and another 1,000 indirectly across the value chain,” he added.

The company is also looking to set up a mix of large and smaller city centre format stores across UP, coupled with an e-commerce platform “in the coming months,” he said.

According to Noida Authority officials, the land deal was for Rs 750 crore and IKEA over the years paid Rs 300 crore, but delays in instalments led to “late payment” penalties being added to the outstanding amount.

“The matter has now been resolved. We have gone through their request and have prepared a fresh payment plan. It will be taken up at the next board meeting for approval,” said Ritu Maheshwari, CEO of Noida Authority said, adding that while certain charges are waived, IKEA will have to pay the land cost premium and prevailing interest rate.