Staff Reporter

Realtors attribute it to slowdown in investment in infrastructure, software and industries

VUDA advertises sale of 144 acres

Review of strategy needed, says Vice-Chairman

VISAKHAPATNAM: The first e-tendering by Visakhapatnam Urban Development Authority (VUDA) for auction of bulk lands received no response with the deadline expiring at 5 p.m. on Monday.

VUDA had advertised through e-mode the sale of 144 acres at Madhurawada and Rushikonda with an upset price of Rs.4 crores an acre at Rushikonda and Rs. 3.5 crores at Madhurawada. As against a total upset price of Rs.525 crores, VUDA expected to mobilize around Rs.600 crores.

Target

“No, we didn’t get any bids and we have to review our strategy,” VUDA Vice-Chairman V.N. Vishnu told The Hindu when asked to comment on their next course of action.

VUDA has been set a target to mop up Rs.1,400 crores this year by the State government to contribute towards reducing the budgetary deficit as against last year’s target of Rs.1,000 crores.

After riding high on realty wave, VUDA received a major setback on May 22 when there was no response to bulk land auctions held amid protests by opposition party activists at VUDA children’s theatre. At that time, VUDA had fixed the upset price of bulk lands at Madhurawada at Rs.4 crores and Rushikonda Rs.5 crores an acre.

VUDA officials, off the record, attribute the nil response to their auction bids in recent past to slump in real estate trade.

Realtors admit that slowdown in investments, particularly in infrastructure, software and industries, have hit trading of big lands while keeping the upward trend in apartment prices consistent.