Bidding system for plot allotment ends in Gautam Budh Nagar district

The Uttar Pradesh government has instructed the Noida, Greater Noida, and Yamuna Expressway Industrial Development Authority (Yeida) to discontinue the practice of allotting industrial plots through competitive bidding, officials said on Saturday, adding that the government believes that the current system hampers the objective of providing plots easily for new ventures.

The three authorities will collaborate to develop a new policy for land allotment, officials added.

In April 2022, Noida, Greater Noida, and Yeida, in their respective board meetings, decided to adopt e-bidding for the allocation of industrial plots, replacing the previous manual system. Under the e-bidding system, applicants could secure a plot by offering the highest price, unlike the previous method that did not allow bidding.

Previously, plots were allotted based on interviews and evaluations of a company’s profile. “Considering the investment requirements and the concerns of investors, the e-bidding system should be discontinued, and a new policy should be formulated to ensure transparency and accountability in the allotment process,” said Manoj Kumar Singh, the Uttar Pradesh Infrastructure and Industrial Development commissioner and chairman of Noida and Greater Noida authorities.

Following the directives of the Uttar Pradesh government, the three industrial bodies will devise a uniform policy that promotes transparency and accountability without relying on e-bidding, which is seen as contrary to the interests of entrepreneurs. “We have received communication from the UP government regarding this development. Following the instructions, we will work on formulating a policy, seek approval in a future board meeting, and subsequently implement it,” said Arun Vir Singh, CEO of Yeida.

According to officials, industrial unit associations and investors have been demanding the discontinuation of the e-bidding system, as it disadvantages entrepreneurs seeking to establish innovative businesses on a limited budget.

Rishabh Nigam, President of the Yamuna Entrepreneur Association, said, “The e-bidding system is unfair, as it discourages entrepreneurs from setting up units in Noida, Greater Noida, and Yamuna Expressway areas, where they cannot afford the costly plots obtained through e-bidding. We welcome the UP government’s move, as it will benefit medium, small, and micro enterprises.”