The Greater Noida Industrial Development Authority (GNIDA) has launched a new scheme for the allotment of plots designated for Business Process Outsourcing (BPO) and IT-enabled Services (ITES). The scheme, designed to promote the growth of IT and outsourcing businesses in the region, offers prime land parcels in strategic locations within Greater Noida. The entire allotment process is conducted through an e-auction, providing a transparent and competitive bidding environment for interested parties.
This article outlines the key details of the scheme, eligibility criteria, application process, payment options, and other important considerations for prospective bidders.
1. Scheme Overview
The scheme offers plots in the Knowledge Park area of Greater Noida, a rapidly growing hub for IT and BPO businesses. These plots are ideal for companies looking to set up offices, data centers, or any other ITES-related infrastructure.
GNIDA’s BPO/ITES plot scheme aims to attract businesses in the outsourcing and technology sectors by providing affordable and well-connected land options. The strategic location of these plots, coupled with robust infrastructure and connectivity, makes Greater Noida an attractive destination for businesses.
2. Eligibility Criteria
The scheme is open to a variety of applicants, including:
- Proprietors or individuals
- Partnership firms
- Limited Liability Partnerships (LLPs)
- Private and public limited companies
The eligibility requirements ensure that only financially capable entities apply for the plots. The minimum financial criteria include:
- Net Worth: For plots up to 500 square meters, applicants must have a net worth of at least INR 40 lakhs. For plots larger than 500 square meters, the net worth requirement is INR 80 lakhs.
- Solvency: Applicants need to present a solvency certificate from a nationalized or scheduled bank, with a minimum solvency of INR 20 lakhs for smaller plots and INR 40 lakhs for larger ones.
- Turnover: Applicants must show a minimum turnover of INR 50 lakhs for smaller plots and INR 80 lakhs for larger plots over the last three financial years.
Entities that have defaulted on GNIDA’s previous schemes are automatically disqualified from participation.
3. Application Process
The application process is entirely online, allowing for a streamlined and efficient experience for prospective bidders. Here are the key steps involved in the application:
Step 1: Registration
Applicants must register on the GNIDA e-auction portal. Upon registration, they will receive a user ID and password that will allow them to access the e-auction system.
Step 2: Submission of Documents
Interested parties must submit a comprehensive set of documents, which include:
- A project report outlining the proposed development plan
- Financial documents, including audited balance sheets for the last three years
- A solvency certificate from a recognized bank
- Proof of registration, including certificates of incorporation or partnership deeds
- A board resolution or authorization letter designating an authorized signatory
Step 3: Payment of Fees
Applicants must pay a non-refundable brochure fee of INR 5,900 (inclusive of GST) and a processing fee of INR 11,800 (inclusive of GST) for each plot they wish to bid on. Additionally, 10% of the total premium of the plot must be submitted as registration money, which will be adjusted against the final payment for successful bidders.
Step 4: Participation in E-Auction
Once registered and the necessary documents are submitted, applicants can participate in the e-auction. Bidding is conducted in real time, and each plot has a reserve price that cannot be underbid.
The system allows for an incremental bidding process, where each subsequent bid must be at least 1% higher than the previous bid. The bidding continues until the scheduled closing time. If a bid is placed within the last five minutes, the system will automatically extend the bidding period by another 10 minutes.
4. Payment Options
Successful bidders have two payment options, each with distinct timelines and benefits.
Option 1: Full Payment
Under this option, the bidder must pay 100% of the total premium of the plot within 90 days of receiving the allotment letter. Bidders choosing this option will benefit from a 2% rebate on the total premium, which can result in significant savings.
Option 2: Installment Payment
The second option allows for a staggered payment approach, where the bidder pays 40% of the total premium within 60 days of the allotment letter and the remaining 60% over three years in six equal installments. This option is ideal for businesses that may need more time to manage cash flow.
The balance payments under this option will carry an interest rate of the State Bank of India’s Marginal Cost of Funds-Based Lending Rate (MCLR) plus 1%. Failure to make payments on time will result in a penal interest of an additional 3% per annum.
5. Lease Terms and Construction Requirements
All plots are offered on a 90-year lease basis. The lessee is expected to adhere to specific construction deadlines to ensure timely development of the project.
Construction Timeline
Bidders must complete the construction of their projects within three years of executing the lease deed. In case of unavoidable delays, GNIDA may grant an extension, but this is subject to approval and additional penalties.
Lease Rent
In addition to the premium, the lessee must pay an annual lease rent equivalent to 2.5% of the total premium for the first 10 years. After every 10 years, the lease rent will increase by 50%. Alternatively, the lessee can opt to pay a one-time lease rent, equivalent to 13 years of annual rent, at any point during the lease period.
6. Location Charges
Certain plots attract additional location charges based on their proximity to key infrastructure. Plots located on corners or facing parks, green belts, or wide roads are subject to location charges of 5-10% of the total premium. Additionally, plots located within 1 km of a metro corridor will have a reserve price increased by 10%.
7. Functional Certificate and Compliance
Within six months of receiving the completion certificate for the construction, lessees must obtain a functional certificate from GNIDA. This certificate verifies that the plot is being used for its designated purpose and that the building is operational.
Failure to obtain the functional certificate can lead to penalties of up to 4% of the total premium per year. Continued non-compliance may result in the cancellation of the lease and forfeiture of up to 20% of the total premium.
8. Transfer and Surrender Policies
The transfer of plots is not allowed until the lessee has completed the project and obtained the functional certificate. However, GNIDA may permit transfers after completion, subject to specific fees and conditions.
In cases where bidders wish to surrender their plots, the forfeiture of registration money or other payments will depend on the stage at which the surrender occurs. For example, if the surrender occurs before the issuance of the allotment letter, only the earnest money deposit is forfeited. However, if the surrender occurs after the issuance of the allotment letter but before the execution of the lease deed, up to 10% of the total premium may be forfeited.
9. Key Considerations for Bidders
Prospective bidders must carefully evaluate the financial and operational commitments required under this scheme. The payment timelines, interest rates, and penalties for non-compliance can have a significant impact on the overall cost of the project. Additionally, bidders should conduct due diligence on the plots by visiting the site before submitting their bids to ensure that the location and infrastructure meet their needs.
Conclusion
The Greater Noida BPO/ITES plot scheme offers a valuable opportunity for businesses in the IT and outsourcing sectors to establish a presence in a growing region. With flexible payment options, strategic locations, and transparent e-auction processes, the scheme is designed to foster growth and investment in the area. However, prospective bidders must ensure that they meet all eligibility requirements and are prepared to adhere to the strict timelines for construction and compliance. By doing so, businesses can take full advantage of the benefits offered by GNIDA and contribute to the region’s development.
