New Town : 17-Acre Prime Land Worth 800 Crore Set for Auction

This Poila Baisakh, Kolkata is set to witness one of its most significant real estate transactions. A 17-acre commercial plot in New Town, valued at over Rs 800 crore, is scheduled for auction within a month. Located in Action Area 1, between Novotel and Axis Mall, this prime land parcel presents a rare opportunity for large-scale development. With approximately 30 lakh square feet of construction potential, the project could generate employment for over 25,000 people while significantly boosting government revenue.

Reauction Process Underway for Prime New Town Land

The plot was initially offered for auction two weeks ago but faced setbacks due to discrepancies in the tender documents, resulting in no successful bids. The West Bengal Infrastructure Development Finance Corporation (WBIDFC), which owns the land, is now preparing revised tender documents for reauction.

WBIDFC acquired the plot from HIDCO in 2012 as part of a financial settlement. HIDCO had borrowed funds from WBIDFC and, in return, transferred this and other residential plots. Over time, WBIDFC successfully developed and sold the residential plots in various tranches.

BSNL Alipore Plot Monetization Still in Progress

Another major land transaction, previously reported in TOI, involves a 24-acre BSNL plot near Taj Bengal in Alipore, valued at over Rs 1,900 crore. The National Land Monetizing Corporation (NLMC), established by the Central Government to unlock public sector assets, is managing the process. However, this sale is still in the early stages and could take another 4-5 months to materialize.

Strategic Importance of the New Town Auction

Industry experts believe that the New Town auction could be a game-changer for the region. According to Sushil Mohta, President of CREDAI West Bengal, the land is well-suited for high-end commercial developments such as malls and hotels. CREDAI Bengal President echoed this sentiment, emphasizing the transformative potential of the project.

Kolkata’s Biggest Land Deals in Recent Years

The most significant executed land deal in Kolkata took place in August 2022, when a 5.6-acre plot in Alipore was sold for Rs 400 crore. Mumbai-based real estate giant The Phoenix Mills Ltd secured the land with a record-breaking bid of Rs 71 crore per acre. If the New Town auction reaches a similar valuation per acre, it could become one of the most expensive land transactions in the city’s history.

In another notable sale, a 10-acre plot in Nonadanga was auctioned for Rs 260 crore, with the Ambuja Group emerging as the highest bidder.

What This Means for Kolkata’s Real Estate Market

With the New Town land auction set to attract major developers and investors, the deal could mark a new era in Kolkata’s commercial real estate landscape. If successfully executed, it will not only enhance infrastructure but also contribute to economic growth and employment generation in the region.