(a) the basic difference between `No Profit No Loss`, `Economic Rate` and `Reserved price` in so far as their meaning in relation to determining the prices of units of Commercial complexes is concerned; and
(b) the formula and methodology to work out and calculate the three types of prices?
cMINISTER OF STATE FOR URBAN DEVELOPMENT & POVERTY ALLEVIATION ( SHRI BANDARU DATTATREYA )
(a): The Delhi Development Authority, which is the major player
in the construction and disposal of commercial complexes in
Delhi, has informed that there is no concept of `No Profit No
Loss` and `Economic Rate` in the rules/regulations governing the
disposal of commercial complexes by DDA in Delhi. However, the
`Reserve Price` is the price below which the DDA would not
accept the bid in an auction or a tender.
(b): The `Reserve Price` for auction of commercial built up
properties in Convenience Shopping Centres (CSC) and Local
Shopping Centres (LSC) is fixed by reducing the average auction
rate of the commercial built up properties of CSC and LSC in the
immediate preceding year by 10% subject to the condition that
the reserve price so fixed is not less than the cost of
acquisition plus cost of development.