Zubair Qureshi
Capital Development Authority (CDA) got an enormous response from investors on the first day (Wednesday) of the auction of the Blue Area Commercial plots.
CDA received auction bids against seven plots amounting to 11.7 billion. The auction committee issued acceptance against four plots amounting to Rs.7.25 billion which is equal to the expected proceeds from this auction as per CDA budget estimates.
The remaining bids against three plots amounting to Rs. 4.458 billion were only offers as per decision of the committee since the authority was expecting higher bids / receipts from these plots.
The auction process on day one witnessed enthusiastic participation by investors which testifies confidence of investors in CDA auction as per vision of the government to promote construction industry for boosting economic and investment opportunities in the country.
The Capital Development Authority had selected 24 plots for ongoing auction of Blue Area plots. The auction proceedings which started on Wednesday will continue on Thursday (today) and Friday (tomorrow).
The CDA has announced special incentives for this auction which include a dedicated team to facilitate incentive at every step, first installment of 25 percent within 30 days of bid acceptance, building plan approval facility after first installment and 10 percent discount on full payment in advance. Similarly advance income tax on pro rata basis and 100 percent coverage for less than 1000 sq.yd. plots. Almost 70 to 75 percent coverage, every plot with all round circulation strip, ample public parking while application of newly developed building bye laws, approval of building plans after first installment and the bidders who get their building plans approved by December 31, 2020 will be eligible for the benefit of PM package for construction industry which include reduction in tax rate from 29% to 10% and exemption from source of income declaration.
CDA has constituted a committee consisting of 10 members to conduct the auction. Member Finance CDA is chairman of the committee while Member Estate, Member P & D, DFA-II, DG Law, Director Public Relations, Director Urban Planning, Director Regional Planning, Director EM-II and Director Finance are members of the committee.
Bids received will be presented before CDA Board which is competent forum for acceptance of bids.
