The Yamuna Expressway Industrial Development Authority (Yeida) on Tuesday said it has sold 45 commercial plots to generate a revenue of ₹265.14 crore as a few buyers placed bids higher than the reserve price of plots located near the Noida international airport in Jewar.
The authority launched a commercial plot scheme a month ago, inviting applications from interested buyers. On Tuesday, Yeida held the e-bidding to allot plots to the person placing the highest bid against the reserve price.
As per the prevailing market sentiments, Yeida fixed ₹2.50 crore for each plot measuring 1,000 square metres for shopping complexes in different areas.
“We will be able to generate a revenue of ₹265.14 crore against the fixed reserve price of ₹112.50 crore because some applicants placed very high bids against certain plots. We will be able to get an additional amount of ₹152.64 crore because the bids went up by 134% against the reserve price for certain plots,” said Arun Vir Singh, chief executive officer (CEO), Yeida.
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The reason behind placing higher bids against the reserve price is that buyers want to cater to the commercial space demand generated by the Noida international airport, which is set to become functional by April-end 2025, he added.
What does the DPR say?
As per the detailed project reports (DPRs) of applicants who participated in the commercial plot scheme, they will together make an investment of ₹500 crore in all 45 commercial projects. And they estimate to create 5,000 jobs in the region once these projects become operational, said officials.
“We are surprised that applicants placed 12% higher bids against three plots. These three applicants are Challenger Compute, Alexis Global and Sanash Impex. The Challenger Computers placed a bid of ₹28.28 crore against ₹2.5 crore reserve price, Challenger Computers bid ₹26.64 crore, and Sanash Impex bid ₹25.84 crore, thereby helping the authority to generate ₹80.76 crore from just three plots,” said Singh.
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On apprehensions about construction, another Yeida official said: “Some people think that after buying these three plots for such a high price, these buyers will run away without starting construction. But in such a scenario, the 10% security amount that they paid for participating in the e-auction will be forfeited.”
“The future will clarify whether these three companies were serious about taking these plots. If they come to take possession and develop a project, then it means that they want to cash in on the sentiment created due to the Noida airport,” said Dinesh Gupta, secretary, Confederation of Real Estate Developers Association of India (CREDAI), a realtors’ lobbying group.
