Real Estate

NBCC not to invest in Amrapali’s stalled projects

PTI New Delhi | Updated on August 16, 2019 Published on August 16, 2019

In July, the Supreme Court asked the NBCC to complete pending projects of the Amrapali Group at an 8 per cent commission. File photo   -  The Hindu

State-owned NBCC on Friday said it will not “invest any money” in completing debt-laden Amrapali’s stalled projects that require a whopping ₹8,500-crore investment.

Last month, the Supreme Court asked the National Buildings Construction Corporation (NBCC) to complete pending projects of the Amrapali Group at an 8 per cent commission.

Replying to an investor query regarding balance construction cost for stalled Amrapali projects and how the same will be funded, NBCC’s Executive Director (Finance) Yogesh Sharma said the total estimated investment required is around ₹8,500 crore.

This amount includes 8 per cent PMC (project management consultancy) margin for the NBCC which has been agreed and ordered by the Supreme Court, he said in an investor call after announcing financial results for the first quarter.

The transcript of the investor call was filed by the NBCC with stock exchanges.

Funding arrangement

“This funding will be arranged, explicitly it has been put in our proposal also and agreed by the Supreme Court that the funding will be arranged by either the Supreme Court through its various mechanism which it is operating through Amrapali group of company and the NBCC will definitely not be investing any money in the construction of the project,” Sharma said.

Published on August 16, 2019
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