VMRDA hopes to raise Rs. 300 cr from the sale of the land

Visakhapatnam: The Visakhapatnam Metropolitan Area Development Authority (VMRDA) has launched an exercise to sell a large plot of land spread over Visakhapatnam and Anakapalli districts to raise at least Rs 300 crore to fill its empty coffers.

Taking advantage of the property price hype in anticipation of making Visakhapatnam the executive capital of Andhra Pradesh and launching big projects like Adani Data Park and Bhogapuram International Airport by GMR Group, VMRDA, the most large regional development authority in the state, wants e-auction of plots for various purposes. The starting price has been increased from Rs 8,000 per square meter to Rs 40,000 per square meter depending on location, vaastu and commercial importance.

Furthermore, VMRDA has decided in principle to sell 10 plots of land in the two districts spread over 24 acres. According to reliable sources of VMRDA, the following lands 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. Based on the starting price, all plots will fetch Rs 175 crore if not sold at a price above the minimum price set by VMRDA.

Sources said the dates for the electronic auctions have been tentatively set for September 12 for the first phase and September 15 for the second phase.

Potential buyers will be allowed to participate in the auction by quoting the starting price and the increment will be Rs 100 per square meter. The successful bidder must pay 10% of the amount they bid for within 72 hours. VMRDA shall have the right to reject or accept any offer.

The time set for the auction is three hours, which will be extended by 30 minutes. VMRDA has received criticism from several organizations in the past for setting upset prices at a higher amount for MIG developments in the districts.

VMRDA Chairman A. Vijaya Nirmala said that in line with the priority of the government, their focus will be to develop more MIG layouts. VMRDA recently consulted with private developers to explain its willingness to take on more projects under the public-private partnership model.

“Although there is not much speed in real estate transactions, due to the hype, everyone is offering higher amounts, whether it is for a new apartment or an old one or residential or commercial land” , remarked Ramana, a real estate agent.