PSU’s to Build Residential Projects
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NBCC – the State-owned project management consultancy firm is likely to take over two sick PSUs [Public Sector Undertaking] land in order to build residential projects by the end of this financial year that is March 2019. NBCC figured out four to five land parcels for the same projects out of which the one is planned to be developed in Delhi-National Capital Region [NCR] and the second residential project will either come up in Hyderabad or Kolkata.

Anoop Kumar Mittal, Chairman & Managing Director NBCC said that the company has approached for plots ranging between any sizes from 80 acres to 1,000 acres. He further said that the firm is currently planning to construct residential townships, affordable and mid-income housing along with some commercial projects on the land which will be taken over from the sick PSUs. Until now, NBCC discussed the development of the residential projects with nearly 25 PSUs [Public Sector Undertakings] who have additional land parcels in various cities like Delhi, Gurgaon, Pune, Hyderabad, Nainital and Raigadh near Mumbai. Also, the NBCC is planning to undertake two Public Sector Companies involved in the construction-related business. The company is likely to finalize this deal by the end of second quarter of the current financial year as NBCC will be funding these acquisitions via their internal accruals. In the last financial year, NBCC attained 51% stake in Hindustan Steel Works Construction Ltd. widely known as HSCL.

Recently, NBCC’s booked orders costs Rs 80,000 crores and is likely to increase to Rs 100,000 crores in case the land parcel for these two residential projects are acquired as per the plan. NBCC is also planning to develop more than 40 acres of land in Mumbai’s Wadala location. This project will incorporate both offices and residential accommodations along with free-sale commercial and residential projects.

Anoop Kumar Mittal, Chairman NBCC also commented that the company is expecting to generate revenue worth Rs 8,000 crores via the sale of a free-sale component and this earned amount will be utilized as the project’s construction cost. He further added that the free-sale residential project is planned to have 2,000 residential units approximately which will consist of 2, 3 and 4 bedrooms.