YEIDA E-Auction Policy Overhaul: Boosting Competition for Development
The Yamuna Expressway Industrial Development Authority (YEIDA) is planning to revise its e-auction policy to ensure greater competition and prevent potential financial losses. Under the new YEIDA E-Auction Policy, no plot will be allotted if there is only one bidder, and the same rule will apply to project contracts. This revision is expected to be discussed at the next YEIDA board meeting scheduled for June 21.
Currently, if only one applicant participates in the tendering process, the bids are extended twice by seven days each. If there is still only one bidder in the third round, the project is handed over to that bidder, provided their bid exceeds the reserve price. The new policy, however, proposes that if there is still only one bidder in the third round, the land allotment or tender for the project will be cancelled and postponed.
YEIDA CEO Arun Vir Singh explained, “The idea is to ensure robust competition between bidders and avoid potential losses due to the presence of only one applicant in e-auctions. In the new policy, we have proposed that if there is only one bidder in the first round, it should be extended by seven days. If the second round also sees only one participant, it can be extended by another week. But if the third session still fails to attract a minimum of two companies, the scheme will be cancelled for the time being and put off for later.”
This revised YEIDA E-Auction Policy will also apply to project contracts, requiring at least two participants in the third round of tenders for any project to proceed. The current policy has faced criticism for being financially unviable since projects or land had to be allotted to a single bidder even if their bid was only marginally higher than the reserve price.
In contrast, Noida and Greater Noida authorities still follow the old auction policy. However, sources indicate that Noida Authority is in the process of incorporating similar changes. Recently, the Noida Authority cancelled the allotment of two commercial plots to subsidiaries of the Gurgaon-based real estate company M3M due to concerns over non-competitive pricing. Although this decision was later reversed, the incident highlighted the need for more competitive bidding processes.
By ensuring at least two bidders in the final round, YEIDA aims to foster better competition and secure more advantageous bid prices, ultimately benefiting the authority and the stakeholders involved.
Read more: Haryana CM Announces Distribution of Plot Possession Certificates to BPL Families
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