In five years, NBCC hopes to increase its revenue to Rs 25,000 crore

19 Dec 2023 , 12:24 PM

According to KP Mahadevaswamy, CMD of NBCC, the state-run company aims to grow its revenue from Rs 11,000 crore in the current fiscal year to Rs 25,000 crore over the course of the next five years, as ET was informed.

The corporation also wants to focus on real estate development and redeveloping property that is not used by other PSUs in order to grow yearly profit to Rs 5,000 crore in five years from Rs 400 crore today.

‘NBCC’s overall performance was impacted by Covid, but we are back on track and have a full pipeline of projects.’ We intend to accept orders of between Rs 15,000 and Rs 20,000 crore annually, with a 55,000 crore order book. Mahadevaswamy stated, ‘We have a plan in place to generate Rs 25,000 crore in revenue over the next five years.

The business projected revenue of Rs 8,900 crore for 2022–2023 and Rs 11,000 crore for 2023–2024.

In addition to providing project consulting, NBCC concentrates on real estate and redevelopment projects in order to boost income.

We are aiming to commercially utility the unoccupied property that some PSUs have, and we are in talks with them about it. We successfully completed that task in Delhi, thus we have experience with it. Going future, this will be a significant business for us, the CMD said.

NBCC sold 13 different companies 223,000 square feet of commercial space in Nauroji Nagar, south Delhi, for Rs 905 crore last week.

With this, the business has sold a total of 23.92 lakh square feet of commercial inventory through an open electronic auction, with a transaction value of Rs 9656.62 crore.

Three of the seven housing colonies in Delhi that the government had indicated would be redeveloped—Nauroji Nagar, Netaji Nagar, and Sarojini Nagar—were given to the NBCC.

An estimated Rs 12,000 crore of the project’s total cost will be realised via the sale of the Nauroji Nagar project, while an additional Rs 20,000 crore will come from Sarojini Nagar. A 25-acre business complex is planned for Nauroji Nagar.

NBCC intends to assist farmers in order to contribute to India’s growth narrative, hence it will also prioritise rural infrastructure.

In order to develop the largest grain storage plan in the world in the cooperative sector, NBCC has inked a framework Memorandum of Understanding (MoU) with the National Bank for Agriculture and Rural Development (NABARD) and the National Cooperative Development Corporation (NCDC).

We hear about agricultural waste every year. Farmers won’t have to go far to store grain starting next year since we are making this initiative a top priority. The rural economy will benefit greatly from this, according to Mahadevaswamy.

NBCC plans to build 1469 grain storage units in different Indian states at a cost of about Rs 1500 crore.

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