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Public sector construction enterprise NBCC (India) Ltd is in the initial stages of considering a proposal to set up a non-banking financial company (NBFC) to drive growth, multiple sources told BusinessLine on Thursday.
“The idea is in the preliminary stages. It is one among the many ideas that the company is internally thinking over in order to drive growth in the future. This may be considered in the agenda for the board meeting that is scheduled in the middle of November. But the concrete agenda will be finalised 10 days before the meeting,” a source in the know of the development said.
The company, however, has to do due diligence and undertake research studies before taking this proposal forward, the source said, adding that this is necessary as the company is listed on the bourses.
“The idea has been initiated today. NBCC is the executing agency to develop the second phase of the trauma centre and multispeciality hospital at the All India Institute of Medical Sciences (AIIMS). Since AIIMS is seeking a loan worth ₹2,000 crore for this project, a thought emerged that why couldn’t NBCC be one of the lending agencies,” another official said.
In December 2015, NBCC had signed an MoU with AIIMS to develop the second phase of the trauma centre at the premises. The facility will be developed on a 15-acre plot at a cost of ₹3,000 crore.
When contacted, NBCC CMD A K Mittal said, “There is no plan at the moment to set up an NBFC. For redevelopment projects, we set aside a small percentage as a dedicated fund. We are a construction company and will focus in this area only.”
Among other projects, the company is currently engaged in the redevelopment of East Kidwai Nagar, New Delhi, which is a ₹5,000-crore project. It has also begun preliminary design work in the redevelopment of three colonies — Netaji Nagar, Sarojini Nagar, Nauroji Nagar — in New Delhi.
NBCC (India) Ltd is under the administrative control of the Ministry of Urban Development and has interests in construction, engineering and project management consultancy services.
The company’s shares ended 2.90 per cent lower at ₹272.45 at the BSE on Thursday.
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