Bids for UP townships to open on June 10

The financial bids for the townships proposed to be developed by private developers and consortiums in Uttar Pradesh will open on June 10.

Five companies, including Eldeco, Mantri Housing, Supertech, Shristi and DLF, are in fray after qualifying the Request for Proposal (RfQ) round in January.

“Seven companies had submitted their technical bids, of which five qualified for the final bidding process,” a senior housing and urban planning department official told Business Standard.

The deadline for filing Request for Proposal (RfP) was extended last month on the request of prospective bidders. Awas Bandhu under the state housing department is the lead agency. The companies have bid for developing townships in Lucknow, Ghaziabad, Gautam Buddha Nagar and Kanpur. The townships would be developed outside the jurisdiction of the local municipalities and development authorities.

“The private parties have bid for these towns on basis of their due diligence and demand analysis,” he added. Feedback Ventures is the consultant for these modern townships proposed to be developed all over UP.

Earlier, the state government had amended its New Township Policy on suggestions of the private parties during pre-bid meetings and conferences.

“Considering the real estate slowdown last year, we are happy with the response the companies have evinced in developing townships,” the official noted.

The minimum land area and investment criteria for each township is 1,000 acres and Rs 1,000 crore, respectively. The flow of investment is likely to be over Rs 10,000 crore in this round, as it would entail investment of almost Rs 3 crore to develop an acre of land.

The aim is to promote and facilitate private investment in developing new townships with modern amenities in all the 71 districts.