Guest Column

NBCC a reliable solution by Neelesh Shah Exective Director NBCC

A blue chip Navratna enterprise under the Ministry of Urban Development, NBCC is the only state-owned construction company in the real estate business. It has successfully completed a host of residential and commercial projects across the country and has many others in the pipeline. A profit-making company with a turnover in real estate segment above 7 500 crore, NBCC has a total land bank of 1 43 acres.

In today’s real estate market, reliability and capability of a carefully study the past performance of the developer, the financial health of the company and commitment to deliver. The real estate market in the country has seen a lot of slackness in the last two years. Many developers in the country have been unable to complete the project and buyers’ interests are jeopardised. Besides inoramate delay, some developers have become insolvent and there is no hope of revival of such projects. The investors have suffered a lot and their hard earned money is at stake. The developers make undeliverable promises and attractive offers to lure buyers.

The answer is simple, while investing the buyers have to carefully study the past performance of the developer, the financial health of the company and commitment to deliver. NBCC is a reliable solution to the customers. Being a blue chip Government of India Navratna enterprise under the Ministry of Urban Development, it is the only state-owned construction company in the real estate business. The real estate segment of the company which came into being in 1988, mainly executing commercial real estate projects, has today undergone a sea-change, operation-wise.

The company has successfully completed commercial projects at Pragati Vihar, New Delhi, Bhikaji Cama Place, New Delhi, Pushp Vihar, New Delhi, Okhla in South Delhi, Cuttack in Odisha and Vibgyor Tower in Kolkata, commercial complexes at Ahmedabad and Vadodara in Gujarat and Agartala in Tripura. The residential complex at Rajarhat, Kolkata was completed Recently, NBCC has purcha prime land from the Jaipur Development Authority at Ghandhi Path, Jaipur. The in 201 1. Recently, the company has completed a housing complex at Khekra, which was sold at a very affordable rates ranging from 1,500 to 2,200 per sq.ft.

The major ongoing projects are housing complex at Sector-89 and Sector-37-D, Gurgaon, housing complex at Kochi and residential and commercial complex at Chandarshekharnllr Bhubaneshwar and Rajarhal Action Area-Ill, Kolkata, -7 residential & commercial – complex at Bahadurpur-Patna and commercial complex at & Jaipur-Rajasthan and residential complex at Alwar.

Recently, NBCC has purcha prime land from the Jaipur Development Authority at Ghandhi Path, Jaipur. The in 201 1. Recently, the company has completed a housing complex at Khekra, which was sold at a very affordable rates ranging from 1,500 to 2,200 per sq. ft. company has a total land bank of 143 acres. The company’s turnover in real estate segment has crossed 7500-crore mark ; it is a profit-making company paying more than 50 per cent dividend to its share- holders. The company is listed on BSE and NSE .

Apart from assured delivery to buyers. buyers, the biggest advantage is that the company is following guidelines given in the proposed real estate Act. Though the Act is yet to be passed by Parliament, NRCC is complying with the-visions of the Act. A few the factors being observed are :

1. The project is conceived only after legal ownership is established and land is transferred in the of company.

2. The project is launched for sale only after approval of drawings by statutory/ local authority.

3. Transparency of rates, no hidden charges.

4. Genuine loading for sale area on carpet/built-up space. All the details of saleable area given to the Apart from assured delivery to buyers.

5. No diversion of funds receive against the sale for a particular project.
NBCC has been executing many landmark projects as PMC also, which contributes to about 70 per cent of its annual revenue and also EPC contract. It is a cash-rich company with reserve and surplus of more than Rs.1,000 crore.

This adds to its reliability as a real estate developer since the company does not depend on sale of real estate properties. For timely and effective delivery of real estate products, it has all in-house technical as well as financial resources. The real estate business of the company carries a great promise for the future of the company as it has about 24 residential and commercial real estate projects presently going on at various localities of the country and more are coming up with huge investment.

NBCC is committed to take the vision of Hon’ble Prime Minister of India, Shri Narendra Modi, and Hon’ble Minister for Urban Development, Shri Venkaiah Naidu, to next level of development to construct two crore affordable houses in urban areas for economically weaker sections (EWS) and low-income groups (LIG).

However, the success of all such mega housing and infrastructure projects is definitely linked to bureaucratic reforms like implementation of single-window clearance in true spirit and financial benefits in the forts of interest subsidy and reduction of interest for housing loans.

In the current scenario of the real estate market, NBCC is the most reliable company for buyers / investors.