Mohali industrial plot sells at record Rs 1.65L/sq yd

An industrial plot in Mohali fetched a record Rs 1.65 lakh per square yard during an e-auction held by the Punjab State Industries and Export Corporation (PSIEC), which concluded today. This translates into Rs 8.25 crore for a 500 square yard industrial plot -- a price unheard of until now.

Finer details soon: Officer

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We are analysing and tabulating the data. The exact details of the auction process will be available in a day or two, says a senior Industries Department officer

Property dealers and industrialists in the city, which has clearly outgrown its status as a satellite township of Chandigarh, say before the auction, the price of a similar-sized industrial plot in Mohali was priced between Rs 3.50 crore and Rs 4.50 crore, depending on the location.

The auction of industrial plots by the PSIEC was held after a gap of over two years. With the number of plots in approved industrial estates being limited compared to the demand, especially in cities like Mohali, the bids reached record highs. Dilpreet Singh Boparai, general secretary of the Mohali Industries Association, told The Tribune that the gap between demand and supply in Mohali had driven rates to unprecedented levels. “The need of the hour is to create a land bank for developing new industrial pockets, especially near Mohali,” he said.

While the bidding process for some of the 15 plots in Mohali was still ongoing at the time of filing this report, the average sale price for the plots, 500 square yards each, that were successfully auctioned ranged between Rs 1.50 lakh and Rs 1.65 lakh per square yard, according to official sources. The PSIEC had set the reserve price between Rs 39,000 and Rs 42,900 per square yard, and bidders were required to pay a refundable/adjustable eligibility fee of 2 per cent of the reserve price to participate. Successful bidders have been given five working days to deposit the earnest money, which amounts to 10 per cent of the total bid.

Interestingly, while Mohali received an overwhelming response during the auction process, which began on May 26 for over 260 industrial plots (sizes varying from 250 square yards to 7 acres) across the state, there were few bidders for 12 industrial plots offered in Ludhiana, the industrial capital of Punjab. Sources indicate that the response to the auction of plots in Hi-Tech Valley and on Tajpur Road in Ludhiana was rather “lukewarm”.

Apart from Mohali and Ludhiana, e-auctions were conducted for industrial plots in Abohar, Amritsar, Batala, Goindwal Sahib, Kapurthala, Bathinda, Jalandhar, Mandi Gobindgarh, Pathankot, Raikot, Wazirabad, Nawanshahr, and Nabha (the latter exclusively for green category industries). Official sources say the auction will help the state generate much-needed revenue.