Noida: In 2020, when the Uttar Pradesh government earmarked 100 acres in Sector 33 in Yamuna Expressway Industrial Development Area (YEIDA) to set up an exclusive zone for toy manufacturers, it sought to give a fillip to domestic toy manufacturing, bump up exports, and in the process, challenge the monopoly of China.
Even as YEIDA laid the foundation stone and earmarked the plots five years ago, the lease deed executions slowed down during the pandemic years before picking up again in 2023-24. But two years after several companies executed the lease deeds, the Toy Park appears to have ‘run out of steam’.
Of the 140 plots allotted by YEIDA and the 84 lease deeds executed so far, only two to three allottees have started construction on their plots.
On a visit to the Toy Park, set up by YEIDA, ThePrint found that a majority of the toy manufacturers allotted land are yet to begin construction. Barring the two to three sites where work is ongoing, thick bushes and grassland cover the remaining land, divided up into plots with their respective numbers.
Speaking to ThePrint, some allottees cited a lack of basic amenities—electricity, water, and a proper approach road to the industrial zone—as reasons for their reluctance to start work at the Toy Park, while others blamed the US tariffs, which, they said, have led to a slowdown in the toy industry in India, for their decision to defer construction.
A few others see the allotted land as a potential real estate investment due to its proximity to the upcoming Jewar airport.
Kartik Jain, the owner of Masoom Playmates, a Noida-based manufacturer of electronic toys, told ThePrint that with land prices in the locality of the Jewar airport going through the roof, it could make sense for some landowners to utilise their share of the land for real estate investment purposes, rather than investing their capital to build a new factory.
Jain does not own any land in the Toy Park.
The current market price of industrial land in YEIDA could be Rs 40,000 sqm to Rs 45,000 sqm for a plot size between 1,000 sqm and 4,000 sqm, said Pradeep Singh, the owner of Square Meters Realtors, a real estate agency active along the Yamuna Expressway.
“The price of land may go further up once the Jewar airport becomes operational,” Singh said.
On the other hand, Naresh Kumar Gupta, the owner of Funzoo Toys India, is one of the allottees who is leaving no stone unturned to set up his toy factory on his plot of 10,500 square metres. His factory is set to become operational in November this year.
“I see growth and future in the toy market, so I want to expand. The construction work of my factory started early, and we will be finished by November this year,” Gupta said.
Funzoo Toys applied for the land in 2020. At the time, Gupta said, the rate was roughly Rs 6,700 per sqm, which YEIDA has since increased.
According to YEIDA guidelines, land is allotted on a lease basis for 90 years, and an allottee has 48 months or four years to develop a factory from the date of executing the lease deed and obtaining a functional certificate from YEIDA. However, an allottee may be allowed an extension of six months from the YEIDA CEO. A one-year extension is allowed in some cases if the land allottee pays a four percent penalty.
In cases of non-adherence with obtaining a functional certificate from YEIDA, even after extension, the plot shall be cancelled and/or the lease shall be determined, and the lessor, YEIDA, shall resume possession of the plot. For Toy Park, most lease deeds were executed in 2023 and 2024.
According to media reports, YEIDA cancelled 16 units—allotted in Sector 29 (industrial park) and Sector 33 (Toy Park)—in May this year, when it found irregularities—single families had occupied multiple plots, violating the guideline of ‘one firm, one plot’.
Also Read: Navigating Trump’s tariffs is no child’s play. Indian toymakers are losing out on orders, enquiries
Why allottees are reluctant to build
With only a handful of factories under development at Toy Park, ThePrint contacted some allottees to understand why they have not started constructing factories. Some said they are waiting for the US tariffs to be lifted. Others blamed the lack of basic amenities close to the area, including electricity, water, and residential complexes.
“We will start construction of our factory in the next two to three months,” said Manish Nijhawan, a manufacturer of plastic toys under the name Little Rides India Toys. “We still have 18 months before the deadline; we can finish the construction work for the factory in six months.”
Amitabh Kharbanda, owner of Sunlord Apparel and Toys, who has bought industrial land in Sector 33, told ThePrint, “The area still lacks certain basic amenities, including water, electricity and proper roads.”
“The situation with US tariffs currently is not conducive, as well. Our business is 80 percent exports. If the situation improves, we will open a factory by 2027,” he said.
However, Gupta of Funzoo Toys said the amenities are available in Toy Park; there could be a handful of plots where amenities can be an issue.
Some allottees are making the lack of amenities an excuse because they do not want to develop a factory, said Gupta. “There could be only five to six plots affected due to lack of basic amenities, but no more than that.”
He also said: “With a few maps now being approved, we should see eight to 10 factories coming up by next year.”
According to Jain of Masoom Playmates, another reason that allottees have deferred development is the travel time. “Allottees with existing business or factories in Delhi might not want to travel 50 to 60 km one way, daily to Greater Noida, unless they see huge business potential.”
What YEIDA has to say
A senior YEIDA official, closely associated with the Toy Park project, told ThePrint that 140 allotments have been made since inception, and 84 lease deeds have been executed.
“So far, 58 allottees have taken possession of land, while YEIDA has approved drawing plans for 11 plots,” the official, who did not want to be named, said.
The notices have already been sent to allottees to complete their pending work or give an explanation for the delay, the official added.
Refuting the claims that buyers plan to use the land as a real estate investment, the official said that no person can transfer the land unless a functional certificate for the factory is obtained from YEIDA.
“This is a wrong assessment to make: allottees are using the property as a real estate investment,” the official said, adding that allottees take time to assess their business requirements before developing a factory.
“It is important to understand that most allottees are using this land for expansion purposes [a second factory], so they will develop the factory according to their requirement. We have already asked them to expedite the development of the allotted land,” the official said.
Besides the Toy Park, YEIDA has also allocated land for a medical device park in Sector 28, an apparel park and MSMEs in Sector 29, as well as other commercial ventures in sectors 24 and 32.
(Edited by Madhurita Goswami)
Also Read: Now a step closer to reality, what’s in store at Yogi’s ambitious, delayed International Film City