NBCC Could Take up Incomplete Amrapali and Jaypee Projects


In a bid to complete the unfinished projects to Amrapali and Jaypee, which will benefit nearly 50,000 waiting homebuyers who have not got possession of their homes in spite of paying nearly 90 per cent of the amount; public sector construction company NBCC-NSE 2.47 % is working on a Rs 15,000-crore plan.


The state-run company says than an estimated Rs 7,000 crore would be needed for completing Amrapali’s apartments and around Rs 8,000 crore for Jaypee’s projects; according to media reports.


The company is also making a bid to the Noida Authority to suspend the dues from builders till the project is completed.


While is not keen to take over the companies, NBCC may be roped in as a project management consultant. The charge of the company will remain with the current promoters, or in some cases with the Insolvency Resolution Professional (IRP). However, the NBCC could instate nominees on the boards of the companies to get the complete control company and ensure that the promoters do not interfere with completion of these projects.


In a regulatory filing, NBCC has stated that the company has not issued any official notice regarding the same as “the matter is sub-judice with the court and any concrete decision would be known thereafter only.”


A high-level committee has been set up by the government to work out a plan to complete delayed flats by three builders, including The 3Cs Group. This panel has met thrice to bring about a solution after home buyers had approached the government with their problem. The home buyers are in favour of a government agency taking up the unfinished projects.


A Times of India report said, “The plan is to get the homebuyers, with payments due to put in money into as well as raise some resources which will flow into a dedicated account that will be used only for completing the projects”.


Noida Authority and banks should not ask for more money from the home buyers till the time houses are delivered to them; as advised by the NBCC. Additionally; Noida Authority and banks should seek payments once the buyers are satisfied with their new homes.


According to sources; NBCC will seek to generate revenues from some of the land after competition of the residential part of the projects.


For NBCC is already executing projects worth Rs 80,000 cr across India and taking over these two incomplete projects may not be a gigantic task. Estimates suggest that the total cost of completing both the projects — Amrapalli and Jaypee — may not be in excess of Rs 15,000 crore. The NBCC is not expected to earn much by taking up these incomplete ventures, it may in turn open up more opportunities for the company.

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