The three development authorities in Gautam Budh Nagar will no longer allot industrial plots through e-auction. Instead, they will revert to the earlier system of draw of lots, interviews and background checks.
Officials said the development authorities had been instructed to restore the previous rule with immediate effect. The decision comes after repeated complaints from entrepreneurs, who argued that the e-auction process was not in favour of those associated with MSME sector.
From the time the e-auction process was introduced last year, it had led to an outcry among entrepreneurs, who claimed that it favoured large-scale businessmen and made it difficult for smaller enterprises to expand.
The decision to revert to the earlier system was conveyed through a letter by industrial development commissioner Manoj Kumar Singh on July 6.
“In the board meetings of Noida, Greater Noida and the Yamuna Expressway Industrial Development Authority on April 4, 5 and 26, respectively, we had decided to allot industrial plots through e-auction. After due consideration by the government, the process of e-auction has been decided to be terminated in all three authorities for allotment of industrial plots for the establishment of industries. The status before April 2022 will be restored. The authorities will allot plots by adopting a transparent process, considering the background of the investor and the usefulness of the investment,” the order stated.
Entrepreneurs backed the decision, saying the e-auction process often allowed plot rates to be inflated.
PK Tiwari, the president of the Industrial Entrepreneurs Association, said, “The e-auction process would artificially inflate the prices of industrial plots, pushing small entrepreneurs out of the race. We had been asking for the immediate cancellation of the e-auction process. We had always vouched for equal opportunities.”
Rishabh Nigam, the president of the Yamuna Expressway Entrepreneurs Association, also welcomed the government’s decision, saying that it would bene-fit the industry and the MSME sector.
“Entrepreneurs will no longer have to bear exorbitant prices now. They will have the chance to get plots at rates fixed by the authority,” he added.
Before e-auctions were introduced, industrial plots were allocated through a combination of draws, interviews and an evaluation by the screening committee and the CEO. Entrepreneurs of all categories were eligible to participate in the process.
For plots larger than 2,000sqm, allotments were done after the evaluation of the project by the screening committee. Draw of lots was held for plots smaller than 2,000sqm.
