NBCC and the stalled projects are going hand in hand these days as the insolvency of developers is leading to project delay. Thus, the homebuyers are urging the court to rope in the National Building Construction Company for project completion. So, here we have elaborated what is NBCC and is its role in completing stalled projects.
NBCC – An Organization
NBCC i.e. the National building Construction Company is a state-owned firm that carries out the construction of Government buildings. This is a first of its kind blue-chip Central Public Sector Enterprise (CPSE) that has stepped into the real estate sector.
Experience and Stalled Projects
NBCC has ample experience in constructing residential projects, hospitals, rural roads, TV towers and other infrastructure. Thus, the firm came forward to take over the mid-stuck projects in both Noida and Greater Noida regions if the Supreme Court or Central Government gives go-ahead.
The National Building Construction Company partners with the Union Government to work under ‘Housing for All by 2022’, ‘Smart Cities Mission’, ‘Namami Gange’, ‘AMRUT’, ‘HRIDAY’, ‘Skill India Mission’, ‘Swachha Bharat Mission’ and ‘Digital India’.
NBCC and Funding for Stalled Projects
The NBCC has prepared the plan to recover the partial construction expenditure amounting to Rs. 43,650 crores from the outstanding dues of the homebuyers that accumulate to approximately Rs. 4,000 crore. The National Building Construction Company estimates three months to pay the same and the remaining amount of money will be recovered by auctioning developer’s assets.
The real estate legal experts feel that in the present situation, the Central Government has formed NBCC to liquidate developers’ assets to recover fund to complete projects and also for refunding the homebuyers’ money.
NBCC a Public Sector Undertaking will work as a project manager to complete the stalled projects and will charge 8 percent of the construction cost. The industry experts feel that NBCC should build sample flats in each stalled projects to gain the confidence of homebuyers who of course have a question in mind about work quality.
Role of NBCC in Project Completion
Earlier, the National Building Construction Company was supposed to develop the stalled projects as per the directives of Union Government but the Supreme Court gave the ruling that NBCC will only look after these projects as the property management consultant.
Hon’ble Supreme Court will form a high-level committee that will enter into MoU and with the National Building Construction Company. This pact will include looking over the redevelopment of colonies, hospital and educational establishments. The Defence infrastructure will work to construct border fencing for the armed forces, redevelopment of roads, water supply, drainage system and solid waste management process will also be looked after by NBCC.
NBCC and Real Estate Market
On the advice of the Central Government, NBCC work on the development of residential, commercial and various institutional projects. The company also goes into joint venture to complete projects. Apart from this, NBCC is responsible to develop various residential and commercial properties at a competitive price in order to bid for tenders of such properties.