NBCC Will Not Invest Money In Stalled Amrapali Projects
A cyclist rides across a clearing near residential buildings at an Amrapali Group development in Noida, Uttar Pradesh, India (Photographer: Anindito Mukherjee/Bloomberg)  

NBCC Will Not Invest Money In Stalled Amrapali Projects

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State-owned NBCC (India) Ltd. said it will not “invest any money” in completing debt-laden Amrapali Group’s stalled projects that require a Rs 8,500 crore investment.

Last month, the Supreme Court asked the NBCC to complete pending projects of the Amrapali Group at 8 percent commission.

Replying to an investor query regarding balance construction cost for stalled Amrapali projects and how the same will be funded, NBCC’s Executive Director (Finance) Yogesh Sharma said the total estimated investment required is around Rs 8,500 crore.

This amount includes 8 percent project management consultancy margin for the NBCC which has been agreed and ordered by the Supreme Court, he said in an investor call after announcing financial results for the first quarter.

The transcript of the investor call was filed by the NBCC with stock exchanges.

“This funding will be arranged, explicitly it has been put in our proposal also and agreed by the Supreme Court that the funding will be arranged by either the Supreme Court through its various mechanism which it is operating through Amrapali group of company and the NBCC will definitely not be investing any money in the construction of the project,” Sharma said.

The expected time schedule for the completion of Amrapali projects is around four to five years considering volume of work as well as difficulties of the execution process, he added.

Also read: Amrapali Case: Supreme Court Asks Noida, Greater Noida Authorities To Give Completion Certificate To Buyers

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