NBCC on Thursday said it will develop an additional 13,500 flats in five ongoing projects of Amrapali in Greater Noida with an investment of Rs 10,000 crore after the local authority allowed development on unused land parcels. The company, which has been tasked to complete stalled Amrapali housing projects, expects Rs 15,000 crore worth revenue from these 13,500 flats enabling it to meet construction costs of pending projects and repay bank debts and clear statutory payments to local development authorities.
As per the direction of the Supreme Court, Amrapali Stalled Projects Investments Reconstruction Establishment (ASPIRE) was formed to complete the stuck projects of Amrapali through NBCC (India) Ltd. The state-owned firm was asked to complete 38,000 flats and hand it over to homebuyers.
In 2019, R Venkataramani, Senior Advocate of the Supreme Court, was appointed as the Court Receiver. He is currently Attorney General of India and is still holding the position of Court Receiver.
In a press conference, Venkataramani thanked the Supreme Court for its efforts in ensuring completion of all stalled projects of Amrapali, saying it is unprecedented globally.
He recalled that it was a challenging task to ‘clean’ the ‘sin’, and it took a lot of effort to inspire stuck homebuyers and banks for fresh funding to complete the projects. “We consulted homebuyers in a big way. This gave them confidence,” Venkataramani said.
He also stressed that there is a need for innovative and path-breaking solutions to address the issues confronting the Indian real estate sector and rapid urbanisation.
Elaborating on Amrapali’s pending and upcoming projects, NBCC CMD K P Mahadevaswamy said the Greater Noida Industrial Development Authority has given permission for development on 75 acres of unused land in five existing residential projects of Amrapali.
The authority will be paid nearly Rs 600 crore for allowing this new floor-area ratio (FAR) in these existing projects.
“As per our estimates, we will be able to develop 13,500 apartments on these unused land parcels across 80 residential towers,” he said.
Asked about the investments to develop these apartments and revenue potential, Mahadevaswamy said the total cost would be around Rs 10,000 crore, while the sales realisation is estimated at Rs 15,000 crore.
The NBCC CMD said the plan is to start launching these new apartments in the middle of this year.
Mahadevaswamy said the permission of development on these unused land parcels would improve the cash flow significantly and will enable to repay existing bank loans and statutory payments to authority.
The approval for the development of unused and purchasable FAR in existing five projects — Centurian Park, Golf Homes, Leisure Park, Leisure Valley and Dream Valley — would not lead to reduction in green spaces and other facilities promised to homebuyers, he asserted.
On the pending projects of Amrapali, the NBCC CMD said the company was entrusted with the task to complete around 38,000 flats across various projects, mainly in Noida and Greater Noida, at a project cost of Rs 8,266 crore. A loan of Rs 1,500 crore has been taken from a consortium of banks.
“We have completed around 16,000 flats so far, of which 6,000 apartments have been handed over to customers. We will complete 21,000 units by December this year and the remaining 1,000 units by March 2025,” Mahadevaswamy said.
According to NBCC, there were 46,575 apartments across 25 housing projects and out of that 8,416 units were already occupied by homebuyers prior to the Supreme Court judgment in July 2019.
As a project management consultant (PMC), NBCC got the mandate of completing the remaining 38,159 units as well as the pending common facilities in those projects where 8,416 units were already delivered.
The Supreme Court had granted permission to NBCC to effectuate sale of unsold inventories and Floor Area Ratio (FARs) under the supervision of the court Receiver.
Real estate consultants Anarock and Star Estates were roped in to sell unsold units.
Founded in 1960, NBCC, a navratna CPSE, has three main areas of operation– Project Management Consultancy (PMC) where it executes landmark projects in diversified sectors as also redevelopment projects for government, Engineering Procurement & Construction (EPC) and Real Estate Development.