NBCC, MTNL inks pact for ₹1,600 Crore project in New Delhi

12 Sep 2024 , 01:38 PM

NBCC and Mahanagar Telephone Nigam Limited (MTNL) shares rose by 3% on September 12 after the businesses signed a memorandum of understanding (MoU) to jointly develop a 13.88-acre property piece on Pankha Road in New Delhi.

The site would be converted into residential and commercial space under the project, which is estimated to cost roughly ₹1,600 Crore.

This initiative intends to develop the site into a cutting-edge residential/commercial environment by combining the expertise and resources of both organisations. The venture intends to establish a modern and vibrant property by combining NBCC’s construction and development skills with MTNL’s strategic asset base, according to the company’s exchange filing.

This alliance exemplifies the expanding trend of public-private partnerships in India’s real estate sector, which aim to revitalise critical urban areas and maximise the potential of underutilised assets.

The project is expected to have a mix of high-quality residential apartments and commercial amenities, helping to grow and modernise New Delhi’s real estate scene, according to the statement.

NBCC’s stock has gained by almost 219% during the last year. In comparison, the Nifty gained by 28% during the same time period.

Meanwhile, MTNL shares fell 3.7% to ₹53.98 on the National Stock Exchange (NSE) in the previous session. The stock has gained almost 62% year to date, compared to the Nifty’s 14% growth.

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