Zubair Qureshi
Capital Development Authority (CDA) continued to receive enthusiastic response from investors on the second day (Thursday) of auction of Blue Area commercial plots.
According to a press statement issued Thursday, the two days of auction proceedings witnessed highly encouraging response from a large number of investors who came at Jinnah Convention Centre, Islamabad to participate in auction proceedings.
The participation of a large number in auction proceedings reflects their confidence in CDA and Prime Minister s Construction Package, the statement said.
On second day of auction proceedings, Capital Development Authority considered bids of four plots amounting to Rs 5.54 billion.
Earlier on the first day the CDA had received auction bids against seven plots amounting to 11.7 billion. The auction committee however considered offers for four plots amounting to Rs.7.25 billion which was equal to the expected proceeds from this auction as per the CDA budget estimates. Collectively, during two days of auction proceedings, the auction committee received auction bids amounting to Rs.17.24 billion, however, considered bids of eight Plots amounting to 12.8 billion rupees
The auction proceedings which started on July 15, 2020, continued on July 16 and will continue on July 17, 2020 as well. CDA has announced special incentives for this auction which include 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 a pro rata basis and 100 percent coverage for less than 1000 sq.yd. plots. 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 the CDA Board which is a competent forum for acceptance of bids.
