Anoop Kumar Mittal, Chairman-cum-Managing Director of National Buildings Construction Corporation Limited (NBCC) speaks to SPO India about the recent investments made into, both CSR and construction related projects and its presence in the country and in international markets –
Can you tell us about the total investment NBCC has got on date?
You see you take like this- it’s not investment, but we call this as our order book. The total order book as on date is about 80,000 cr rupees. So last financial year, almost 40,000cr rupees orders we got in 2016-17. This year’s target for 2017-18 is about 25,000cr rupees.
What kind of business opportunities in terms of investments you see across the country, when the smart cities are a concern and NBCC is at the forefront in investment. So can you give some light on investment of smart cities?
In smart cities there are 2-3 components. Of course one is IT related infrastructure development; another is basic infrastructure like sewage schemes, water supplies, road network. And for all this, the city government and municipal corporations need money. And for that government is not funding, except 100cr rupees or 200cr rupees. So what these cities are proposing that, they want to utilise their surplus land for generating the money, like we are doing in Kidwai Nagar, Sarojini Nagar, Naroji Nagar. They want to generate money on that model. So there we see lots of opportunity. So it’s very difficult to quantify that right now, but opportunities are beyond imagination.
Apart from Delhi which are the other states you have got your footprint?
We are present in all the states. Of course Delhi being the capital, maximum presence is visible here. Otherwise we are equally spread everywhere. We have works in south also – Chennai, Coimbatore, Bangalore, Cochin, Hyderabad, and Vishakhapatnam; in east we have huge presence right from West Bengal to Jharkhand and Bihar. And particularly north-east we have presence in all 7-8 states. Of course in Maharashtra, we have the irrigation project in Nagpur; we have recently bagged projects in Mumbai, Pune, Gujarat and so on. So we are equally spread.
What about your international presence?
Presently we are there in 5 countries. We are working on the Supreme Court building in Mauritius, the housing scheme for Mauritius government. We are also doing 2 projects in Maldives and another in Turkey, Botswana and recently we have opened office in Oman also.
You have invested 8.7cr in CSR in 2015-16. So what is the investment in 2016-17?
The minimum investment would be 3% of our profits, which is about 10cr rupees. On CSR, one thing I would like to highlight apart from the normal work that we are doing. This year we have adopted Purana Qila in Delhi. So we have adopted this entire heritage property. Initially we have committed 15cr rupees investment and we may increase this amount also. But we want to create a different kind of environment there; we want to preserve, conserve the property. As well as we want to make this a happening tourist place.
We are planning to invest a minimum of 10cr rupees in CSR.
Any new initiative you want to bring in the green field building?
We have decided that all our buildings now will be minimum of rating 4, gold leaf plated and particularly I would like to mention about the Pragati Maidan redevelopment which is a convention and an exhibition centre with 7000 capacity. The construction will happen on 100 acres of land which will be totally a green project, with zero waste and 100% recycled material.
What is the business forecast for coming year?
For 2017-18, minimum 25,000cr rupees of business is what we sim at.
Anything you want to talk on the smart city vision?
The best example of a smart city is the development of the Moti Bagh colony. In true sense it’s not a city but a smart township. On a similar model, we are redeveloping all other properties. Recently we have acquired one more public sector company – Hindustan Steel Works, it’s a company which was under ministry of steel and now is a part of NBCC. We are trying to purchase a few more construction companies that the government is offering us. In next six months we will buy 1 or 2 more public sector companies.
The objective behind this to consolidate construction related public sector companies under the umbrella of NBCC.
