NBCC plans to acquire sick PSUs, monetise land bank

New Delhi: NBCC India Ltd. has set its sights on acquiring defunct public sector undertakings to redevelop and monetize their land, according to two people with direct knowledge of the matter, as the state-run construction company seeks to leverage success in developing land for some government-owned companies. The company's recent projects include residential colonies for Delhi Transport Corporation, a satellite township for Srinagar Development Authority and land development for Kerala State Housing Board. The plan by NBCC could complement the government’s plan to monetize non-core assets--mainly land--through National Land Monetisation Corporation that was registered in June 2022 as a 100% government-owned company to monetize non-core assets of public sector companies as well as other government agencies. “The biggest challenge will be how the land will be bought or the real estate is developed as every such transfer of company land or real estate has the concept of unearned earnings which need to be shared with the local government," said Gulam Zia, senior executive director, Knight Frank India.