DELHI: State-run construction giant NBCCBSE 0.21 % today said it plans to aggressively tap the real estate market and has set a target to build 10,000 housing units by 2018, entailing an investment of about Rs 6,000 crore.
"The company has massive plans to aggressively tap the real estate market by launching projects across the country. Our target is to build 10,000 houses in the next five years. The total cost would come around roughly Rs 6,000 crore," National Buildings Construction Corporation (NBCC) Chairman and Managing Director, Anoop Kumar Mittal told reporters here.
Mittal said the company has procured 145 acres of land so far and these projects would not be costlier than market and there would be no uncertainty or hidden cost.
"During the current fiscal, we have planned to spend about Rs 400 crore in the particular segment alone with an ambitious plan of spreading our real estate projects in every state," he said after the annual general meeting.
The company will take up five projects in the current fiscal, of which two at Okhala and Alwar have been launched.
The company plans to launch a project in Ghitorni for building 2,000 housing units, he said.
Apart from project in Ghitorni, Mittal said: "Recently, we have signed an MoU with CPWD to develop their 250 acres land in Ghitorni. We will develop 2 crore sq ft commercially exploitable residential and commercial area and sale and construction will be done by NBCC."
Elaborating, he said the construction cost of the project will be abour Rs 15,000 crore and 80 per cent of the area will be for residential projects.
"We want to start construction in this financial year. Cabinet note is ready and generally it takes three months time for approval," he said adding some portion may be for sale to private parties also.
Mittal added that in real estated, the company was doing re-development work as well and work has begun on East Kidwai Nagar project worth Rs 5,000 crore.
"This is self-sustainable on 1.5 million squ ft area," and booking for Rs 4,000 crore has already been made.
The project includes 400 houses which will be given on 30-years lease to government and PSUs.
"Eighty per cent property has been booked on long lease," he said, adding, this is something unique given the real estate market condition.
Those booking commercial space include EPFO office, IDBI bankBSE 1.31 %, Punjab & Sindh Bank, ONGC, Indian Oil.
The government has also given redevelopmnet work of three more companies to it - Netaji Nagar, Kasturba Nagar and Tyagraj Nagar which will entail a cost of Rs 15,000 crore, the CMD said.
NBCC shares closed at Rs 119 apiece on BSE, up 1.23 per cent from the previous close.