New Delhi: State-run NBCC Ltd will not take up Jaypee Infra on project management consultancy (PMC) basis but will invest its own capital to construct the stalled projects of embattled realty firm. It has proposed to invest Rs 120 crore in the first tranche towards completion of the some of the apartments projects of Jaypee Infra.
“Actually we have proposed to invest to the extent of Rs 120 crore because we have to follow the DC guidelines also where there is criteria of the networth for investment, like NBCC can invest, overall to 30 percent of its net worth in all the acquisitions or the subsidiaries which we have acquired so far,” said B K Sokhey, Director-Finance, NBCC Ltd in reply to an investor query during the conference call to discuss the financials of the September quarter.
This is contrast to the Amrapali Group, another beleaguered realty player mired in controversies and stuck projects, where NBCC will complete the stalled project in PMC basis with 8 percent commission.
The transcript of the conference call between the management of NBCC and investors has been filed on the stock exchanges.
The PSU construction company mostly undertakes projects on PMC basis wherein it only gives management inputs for execution and construction without putting in its own capital.
NBCC Ltd is in fray with another firm Suraksha Realty to take over the debt-laden Jaypee Infra under the insolvency process and complete about 27 stuck projects of the company.