NBCC, the State-owned Construction Company is ready to take over distressed real estate projects.
Anoop Kumar Mittal, Chairman NBCC said that there are zero corporate governance issue and earlier also NBCC bid to take over Jaypee Infratech via the corporate insolvency process as its multiple projects are stalled in both Noida and Greater Noida locations.
Mittal further said that a couple of more developers approached us and we are considering the commercial viability of these projects as the NBCC [National Buildings Construction Company] will not take over any projects that involve corporate governance issues. He also refused to name any of the builders who approached the state-owned firm.
Earlier, the Supreme Court directed NBCC to complete the Amrapali group’s stalled projects on the basis of project management consultancy (PMC) model. After conducting a survey the developer informed the Court that Rs. 8,500 crores will be required to complete the stalled projects.
One of the officials said that few banks have approached NBCC to take over assets of companies whose promoters are unable to pay their loans. The official further said that it may be the case that NBCC would take on other projects as it depends on how the negotiations go in case of Jaypee Infratech.
The Jaypee Infratech has an outstanding debt of nearly Rs. 9,800 crore to IDBI and the State-owned Construction Company is offered to form a special purpose vehicle (SPV) to acquire a majority stake in the corporate debtor.
In the year 2017, the NCLT [National Company Law Tribunal] had admitted the application of IDBI Bank-led consortium that seeks resolution of Jaypee Infratech’s debt under the Insolvency and Bankruptcy Code.