Recent controversy over tree cutting in Delhi redevelopment projects might have thrown some of NBCC’s, a Central PSU engaged in realty business, plans haywire. It may be recalled here that NBCC’s large redevelopment projects in Netaji Nagar, Sarojini Nagar and Nauroji Nagar have faced controversy on cutting of trees. The PIL has forced NBCC to replan and redesign some of its projects which may delay its completion. Also, NBCC has invited tenders for relocation and replanting of trees to honour the court orders.
Nevertheless NBCC’s order book is swelling and has reached almost Rs 80,000 crore. And this figure is expected to further go up in the coming months as more orders are pouring in. The company is also taking corrective steps to improve the pace of execution of the contract. Contractors are being asked to undertake a part of design activity themselves (within the broad design and specifications given by NBCC) to enable them to execute fast. Unlike in the past when the company used to award only item rate contracts, NBCC has started awarding fixed price EPC turn-key projects. The company is also employing new construction technologies such as dry construction to speed up the pace of work. Through these various measures the company is aiming to reduce the construction period by 20-50%.
At present, NBCC has around Rs 38,000 crore value projects under execution. Of this, around Rs 15,000 crore value project were awarded during last financial year. This year also the company is planning to award the same amount of contracts. The company has already awarded Rs 4,000 crore value contracts this year.