NBCC, a ‘Navratna’ PSU, plans to award Rs 3,000 crore worth tenders in the second half of the current financial year. In the first half, the company had awarded Rs 8,500 crore worth contracts. Of this nearly Rs 6,000 crore tenders pertain to Amrapali projects. Except two contracts, the company has awarded all contracts pertaining to Amrapali project so far.
In case of Jaypee, final hearing has been completed and the final judgment is expected anytime now. Meanwhile, execution for the Nauroji Nagar project in Delhi is in full swing with 2,200 labourers available on site. In the first quarter, the company had employed 1,500 workers on the site for the project. However, partial forest clearance is still pending for Netaji Nagar and Sarojini Nagar projects. But the company has commenced the tendering process for these projects.
NBCC has also already awarded contracts for both the projects in AIIMS and according to the company, contractors have mobilized the required resources and construction will start soon. Also, approvals for tree cutting and forest clearance have now been obtained. The project has Rs4000 crore revenue potential in the next 4-5 years.
It may be recalled here that recently the Delhi Transport Corporation (DTC) had decided to engage NBCC for development of prime land parcels. NBCC will take up the redevelopment work of Vasant Vihar and Hari Nagar depots and residential colonies of DTC in Shadipur and Hari Nagar in due course. According to NBCC, the company is also in touch with Delhi Jal Board for redevelopment of their land. The total revenue potential from both these avenues could be in the range of Rs 10000 crore.
However, the company is affected to an extent as the projects are no longer awarded on nomination basis due to competitive bidding process. Earlier, NBCC used to enjoy margin of 7-9% in the PMC business when projects were awarded on nomination basis. However, with projects now being awarded on competitive bidding, margins on such projects have declined to 5-7%.