In a strong sign of investor interest, the Punjab Small Industries and Export Corporation (PSIEC) on Monday successfully auctioned all 15 industrial plots on offer in Mohali’s Phase 8-B — its first such auction in four years.
Each 500-square-yard plot carried a reserve price of ₹1.95 crore. While most plots fetched around ₹7 crore each, one went for as high as ₹8.5 crore, over four times its base price.
The auction raked in a whopping ₹60 crore approximately — more than double the total reserve price of ₹29.25 crore. All plots will be allotted against a 99-year lease.
This was PSIEC’s first auction of 500-square-yard plots since the introduction of its new auction policy in January 2019. Before this, industrial plots were allotted on the basis of draw of lots. In its last auction in April 2021, the corporation had sold five commercial sites sized over 1 acre.
A senior PSIEC official said, “We are extremely satisfied with the response, which clearly indicates a revival in Mohali’s real estate and industrial investment climate.”
As part of a wider initiative, from May 26, PSIEC began auctioning 260 industrial plots across various focal points in Punjab, including Abohar, Amritsar, Batala, Goindwal Sahib, Kapurthala, Ludhiana, Mandi Gobindgarh, Mohali, Nawanshahr and Pathankot. The plot sizes range from 500 square yards to 6 acres.
In Mohali alone, PSIEC will be offering plots between 500 square yards and 5,000 square yards in industrial zones, such as Phase 7, 8-A, 8-B, 9.
Pritpal Singh Dhindsa, president of the IT Association in Phase 8-A, Mohali, said, “Investors are showing increased confidence in PSIEC due to their industry-friendly policies and ease of doing business. A Floor Area Ratio (FAR) of 3 is being offered for these plots — a significant advantage over private players, especially for IT set-ups.”
PSIEC Limited, a state government undertaking, has been instrumental in promoting industrial growth in Punjab by developing Industrial Focal Points (IFPs) ranging from 50 to 500 acres in key towns and cities across the state.
In its last auction in Mohali in April 2021, when it sold five commercial sites, an industrial site in Phase-8-A (CP-4), measuring 1.98 acres, had brought in ₹81 crore against the reserve price of ₹28 crore.
CP-3 site in Phase 8-A (1.98 acres) was sold for ₹58.50 crore against the reserve price of ₹28 crore and CP-2 in Phase 8-A (1.98 acres) had gone for ₹69.61 crore against the reserve price of ₹28 crore.
In Phase 9, site 1 (1.35 acres) was auctioned for ₹29 crore against the reserve price of ₹26 crore, while site-2 (1.15 acres) got the highest bid of ₹26 crore against the reserve price of ₹22 crore.