Land auction: CDA to sell off more plots to raise money

Civic agency plans to generate Rs20 billion from the sale.


Our Correspondent August 13, 2013
Land auction: CDA to sell off more plots to raise money . PHOTO: FILE

ISLAMABAD:


To meet Rs10 billion non-development expenditure in the ongoing fiscal year, the cash-strapped Capital Development Authority (CDA) will be holding a two-day open auction of commercial plots starting from August 20.


In the second land auction of the financial year 2013-14, 31 commercial plots have been identified in various developed sectors which are meant for restaurants, hotels, petrol pumps, wedding halls, markets or industrial use.

Some of the plots to be presented for auction include nine plots in I-8 Markaz, eight plots in F-11 Markaz, three plots in Sector G-5, one each in sectors I-9, I-10, D-12 and F-7 and four plots in Sector I-11/4. Two plots in G-5 Markaz are meant for construction of restaurants. Similarly, three plots in Sector I-8 Markaz have been earmarked for a hotel, a petrol pump and a wedding hall respectively, while a plot in Sector I-9 is reserved for the establishment of an industrial unit.

For fiscal year 2013-14, the CDA plans to generate Rs20 billion from the sale of plots in proposed sectors C-15, C-16, undeveloped Park Enclave and sectors E-12, I-12, and through open auction of residential and commercial plots at different sectors of Islamabad.

Every year, to bridge the huge gap between income and expenditures, the CDA presents the generation of revenue through the sale of land after developing new sectors in its budget document, but by the end of the year it found relying solely on auction of plots at developed sectors. In a recently presented Strategy Vision Paper by the CDA chairman it was stated that the civic agency would explore new avenues of revenue generation and would avoid land auctions to raise money.

The auction will be headed by member Finance while other members of the auction committee include member Planning and Design, member Estate and the directors of Public Relations, Estate Management Wing I and II and One Window Operation.

The auction committee will submit its recommendations to the CDA board, which is the final authority for the approval of bids offered for the plots.

Published in The Express Tribune, August 13th, 2013.

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COMMENTS (1)

Hedgefunder | 7 years ago | Reply

selling off assets to pay bills is never very good, in long term !

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