VMRDA hopes to mobilise Rs. 300 cr from land sale

Visakhapatnam: Visakhapatnam Metropolitan Region Development Authority (VMRDA) has launched an exercise to sell a large parcel of land spread over Visakhapatnam and Anakapalli districts to mobilise at least Rs300 crore to fill its empty coffers.

Cashing in on the hype over realty prices in anticipation of making Visakhapatnam the executive capital of Andhra Pradesh and launching of big ticket projects like Adani Data Park and Bhogapuram International Airport by GMR Group, VMRDA, the largest region development authority in the State, wants e-auction of plots for various purposes. The upset price has been arrived at from Rs 8,000 per square yard to Rs 40,000 per square yard based on location, vaastu and commercial importance.

Incidentally, VMRDA has decided in principle to sell 10 land parcels in the two districts spread over 24 acres. Following lands, according to reliable sources in VMRDA, have been identified for sale: Thummapala 3.96 acres and six acres, Madhurawada 0.19, 1.75, 0.64 and 0.83 acres, Kapulappada 1.66 acres, Chittivalasa 3.55 acres and E. Bonangi 0.87 and 4.5 acres. Going by the upset price, all the plots will fetch Rs.175 crore if they are not sold at a price higher than the minimum price fixed by VMRDA.

Sources said the e-auction dates have been tentatively fixed on September 12 for the first phase and September 15 for second phase.

Prospective buyers will be allowed to participate in the auction by quoting the upset price and the increment will be Rs100 per square yard. The successful bidder needs to pay 10% of the amount for which has bid within 72 hours. VMRDA will have the right to reject or accept any bid.

The time fixed for auction is three hours, which will be extended for 30 minutes. VMRDA received flak from several organisations in the past for fixing upset prices at a higher amount for the MIG layouts in the districts.

VMRDA Chairperson A. Vijaya Nirmala said as per the government's priority, their focus will be to develop more MIG layouts. VMRDA recently consulted private developers to explain its thrust to take up more projects under the public private partnership model.

"Though there is not much speed in real estate transactions, due to the hype everyone is quoting higher amounts be it for a new apartment or an old one or a residential or commercial plot," Ramana, a realty agent, remarked.