NBCC plans to acquire sick PSUs, redevelop land banks

BCC India Ltd has set its sights on acquiring defunct public sector undertakings (PSUs) to redevelop and monetize their land, according to two people with direct knowledge of the matter, as the state-run construction company seeks to leverage success in developing land for some government-owned companies.

- Khushi Malhotra

The developer is in talks to acquire non-operational PSUs through a new subsidiary for monetizing their land banks, said the first person in the know, speaking on the condition of anonymity as details are not public yet. The company is in the process of acquiring a Mumbai-based PSU, which is defunct now and has land at key locations in different cities, the person said, without giving details as nothing has been finalized yet.

"Depending on the potential of the land, the company will decide on whether to develop it as commercial or residential. The company is in discussions with government bodies at this stage," said the person.

The company may also look at becoming an equity partner for PSU land redevelopment in the future, said this person.

NBCC has been developing central government-owned land parcels across India for both commercial and residential purposes for a fee as the profit earned goes back to the centre. The Delhi-based company also acts as a project management consultant for the government's civil construction, earning a small percentage of the project cost as fee.

The company's recent projects include residential colonies for Delhi Transport Corporation, a satellite township for Srinagar Development Authority and land development for Kerala State Housing Board.