Noida may get a Municipal Corporation Soon

Noida’s governance structure may see a sea change soon. The Uttar Pradesh State Cabinet, in its recent meeting, discussed establishing a Metropolitan Corporation to improve urban services for residents, The Indian Express reported.

It may be mentioned that the Supreme Court bench led by Justices Surya Kant and Joymalya Bagchi had in August last year, asked the UP government to consider a new governance framework for Noida. It was based on the recommendations of the Special Investigation Team (SIT), constituted by the government in connection with a land compensation scam. The SIT had argued that the city requires a new governance mechanism for better civic services, waste management, public transport and infrastructure maintenance.

Constituted in 1976 as an industrial township under the Uttar Pradesh Industrial Area Development Act, Noida since then is managed by the New Okhla Industrial Development (NOIDA) Authority, formed under the Uttar Pradesh Industrial Area Development Act 1976. The Act does not provide for the creation of a Metropolitan or Municipal Corporation and would require amendments.

According to Times of India report, the State Industries Department has prepared a detailed proposal recommending the creation of a metropolitan corporation in Noida. The note states that Noida was established as a planned industrial, residential, and commercial hub aimed at attracting investments, promoting entrepreneurship, and generating employment through integrated urban development and modern infrastructure. Therefore, restructuring the governance model could potentially affect investor sentiment. Officials stated that legislative amendments would also be required as the prevalent Industrial Area Development Act leaves no scope for the existence of an elected civic body in industrial townships and therefore the cabinet should first take an in-principle decision on forming a metropolitan corporation.

The State Urban Development, Revenue, Planning and Housing Departments had no objections. But the Law Department pointed out statutory challenges in establishing a corporation stating that under Article 243Q of the Constitution, municipalities are not mandatory in industrial townships. The Finance Department has also made it clear that any expenditure arising from the establishment of a metropolitan corporation would be borne by the Noida Authority and should not be a financial burden on the state exchequer.