‘We get projects because of our performance’
BSE-listed NBCC (India) has been showing consistent profit at a time when the construction industry is passing through a slowdown. In an interview with Jyoti Mukul, its Chairman and Managing Director says the government-controlled company will continue to focus on redeveloping the government’s properties and project management. What are your plans for railway station redevelopment? Initially the Indian Railways had allotted 10 stations to us but during the MoU-signing ceremony, the minister of railways desired we do 40-50 stations. We have to develop stations, and the parking and the surrounding areas. Above the rail station area, we can have commercial space for hotel and mall. This will be similar to what we had done for a few stations like Vashi (Navi Mumbai) in 1991. All the stations given to NBCC are in smart cities. The idea is to develop areas around the railway stations. What will be the investment size for each station and what kind of arrangement will NBCC have with the Railways? The minimum exposure to a station will be ~500 crore. The stations will be revenuegenerating, like the redevelopment in Delhi. NBCC has bought land from Air India in Mauritius. Are you looking at buying its land in India also? In Mauritius, we have built a few buildings. We have worked for the Mauritius government and have constructed the Supreme Court building. We came to know Air India has some 1 acre and a bungalow there in a prime location. We approached Air India for buying the property. Initially, we will use it for our office and guest house but later on, we may construct apartments on that land, sell them, and keep one or two apartments as our company guest house. It will serve both the purposes — commercial and our requirement of office.
In India, we have an agreement with Air India to develop and monetise their properties jointly. That agreement was signed three years ago and we are working on that. Air India may approach the government to allow them as well as NBCC to monetise and develop the properties for revenue. Will NBCC buy the land or will it be joint redevelopment? Outright sale may not be immediately possible. It will not be like Mauritius. We will do redevelopment only. We have done surveys and detail project reports for two places in Delhi and one in Chennai, but nothing final decided as yet. What is the status of Pragati Maidan redevelopment? We have called for fresh tenders with some amendments. The design was approved and by August-end, the agency will be finalised. Analysts believe that the company is able to show growth because it takes up government projects, unlike other construction companies that are in a problem. What is your view? It is not always on a nomination basis that we get projects. It is because of the performance of NBCC. There are 10-15 PSU construction companies. The Railways itself has some 15 PSUs but if they have chosen NBCC, they have realised that without NBCC they cannot complete such a big task. At the same time, the Centre is always supportive of NBCC.