YEIDA's tell-tale journey from losses and debts to profitability

The phenomenal turnaround in YEIDA is credited to its chief executive Arun Vir Singh who created an infrastructure that speaks for itself and lure the investors on its own.

Addressing the State Assembly recently, Uttar Pradesh Chief Minister Yogi Adityanath lauded the efforts of the Yamuna Expressway Industrial Development Authority (YEIDA) for successfully turning the tables and making it a profitable venture after years of losses and debts.

Pointing out that YEIDA suffered a loss of Rs 642 crore till 2016, CM Yogi also praised YEIDA for grabbing the opportunity to plan various industrial sectors and attract investors, even during the COVID-19 pandemic, by allotting land to them, and finally bringing itself out of the red.

The turnaround

So, what are the contributing factors that led to the profits of YEIDA, which was once reeling under huge debts and could not even pay salaries to its employees. How then it has been witnessing such a 'big jump in profits' in the last 5 years?

YEIDA, which is located in close proximity to Delhi and other major cities in Uttar Pradesh, has helped attract numerous companies to set up their businesses in the region. It has allocated land to various industries such as IT, electronics, automobile and food processing, which created huge job opportunities and boosted the local economy.

According to data, YEIDA saw Rs 642 crore loss in 2016 and it had a debt of Rs 3,800 crore. On March 31, 2017, the Authority managed to restrict the loss to Rs 165 crore but still had a debt of Rs 3800 crore. However, on March 21, 2018, YEIDA, which is assisting in the development of the world-class Jewar airport there, earned a profit of Rs 136 crore but the loan amount soared to Rs 4,100 crore.

On March 31, 2019, the authority registered a Rs 141 crore profit but the debt amount went up to Rs 4,673 crore. YEIDA has been able to maintain its profitability even during the COVID-19 pandemic. On March 31, 2020, YEIDA made a profit of Rs 142 crore and finally, reduced its debt burden to Rs 3,489 crore. On March, 31, 2021, YEIDA recorded a profit of Rs 154 crore.

Who made it possible

People aware of the developments have credited this phenomenal comeback to the person who heads the project - its chief executive Arun Vir Singh. Talking about the factors that helped the authority to turn the tide, CEO Singh said, ''We have been keeping a grip on financial internal control and actively cutting down on unnecessary expenditures. Our land acquisition process is linked with schemes, implying that no unnecessary land plots are bought.''

Besides, several infrastructure projects such as the 165-km-long six-lane Yamuna Expressway connecting Greater Noida with Agra and several other major highways, flyovers and underpasses were taken up that were able to market themselve better before the investors. Also, the multi-nodal connectivity played a crucial role in the success of YEIDA in attracting investors and promoting economic growth, he explained.

The YEIDA, which functions under the Uttar Pradesh government's Industrial Development Ministry, has developed several multi-nodal connectivity projects, including the above ones, providing seamless connectivity between Delhi and Agra. YEIDA has also established a railway link and an air cargo complex, which have improved connectivity to major markets and reduced transit times.

Super-airport in the making

Another factor behind the turnaround is the Jewar international airport, the flagship project of the Uttar Pradesh government, which is expected to boost the property prices by 30-40 percent in the next 1-2 years. The upcoming super airport near Jewar, which is located to the east of Yamuna Expressway, is expected to see its first phase open in March 2024.

Also, work is underway on many big projects including Film City, Tappal Logistic Hub and Raya Heritage City which are expected to get off the ground by this year-end or early next year. With the completion of these projects, YEIDA would emerge as one of the largest industrial hubs of India.