The Telangana State Industrial Infrastructure Corporation (TSIIC) has decided to take up auction of big land parcels, especially in the upmarket areas of the city, almost after an year gap, hoping to scrape up huge revenues.
This auction will let us know where the Hyderabad city stands with respect to its real estate growth. Around six big lands parcels totaling 15 acres have been identified in Raidurg, Hi-Tech City and Khanamet areas for the e-auction to be held on May 18, in just a little over a week from now.
The TSIIC hopes to garner about Rs 1,000 crore from the auction of these land parcels, which range from one and half acres to around three acres. A government of India enterprise, will conduct the e-auction. The TSIIC has secured the highest reserve price of Rs 80,000 per square yard for the plot at Khanamet near Hi-Tec City railway station; and Rs 60,500 per square yard for the land at Hyderabad Knowledge City in Raidurg.
TSIIC Special Deputy Collector (land) G Shiva Kumar said “The reserve prices have been decided based on the prevailing market rates in the respective areas and also reports from district collectors.”
Shiva Kumar said, in previous land auctions, the highest the government secured was Rs 60,500 per square yard as against the upset price of Rs 40,000 per square yard for land in Raidurg and Rs 59,000 per square yard (upset price Rs 34,000 per square yard) in Khanamet, which is located between Kukatpally and Hi-Tech City and where several new ventures and housing projects have come up, Shiva Kumar said.
This is the fourth auction being taken up by since November 2015, said the TSIIC authorities. While about 65 land parcels in Greater Hyderabad went under the hammer in three phases, only 20 were sold, fetching the government nearly Rs 800 crore. TSIIC got Rs 339 crore and Rs 190 crore, respectively, in Phase I and II auctions held in November 2015 and February 2016. In Phase III, of the auctions held in May 2016, the TSIIC could generate only about Rs 300 crore from seven major land parcels. However, the last dates were extended till August due to a lukewarm response and single bids.
Land parcels in the IT belt such as Gachibowli, Manikonda, Khanamet and Madinaguda were put up for previous auction along with areas like Narsingi, Nizampet, Budvel, Khajaguda, Puppalguda and Manchirevula.
A senior official of the revenue department said, “Many people prefer buying government land as the title will be clear and it is free from litigation. But higher reserve prices may prevent people from bidding. In previous bids, too many plots had no takers due to the high reserve price, which was even more than the market price in some cases.”
This looks like a Hi-Tech Jackpot for the Cyberabad area !!