NBCC Current Affairs
Rail Land Development Authority (RLDA) has inked MoU with National Building Construction Corporation (NBCC) for redevelopment of 10 railway stations across the country on global standards.
The identified stations to be taken up initially by NBCC, a PSU of Urban Development Ministry for redevelopment are Tirupati, Nellore, Puducherry, Sarai Rohilla (Delhi), Madgaon, Lucknow, Gomtinagar, Kota, Thane (New) and Ernakulam. RLDA is an arm of the Indian Railways for commercial exploitation of rail land.
As per the MoU, a Special Purpose Vehicle (SPV) will be formed at the national level as a Joint Venture (JV) company between RLDA and NBCC on 50:50 shareholding basis. The SPV in turn will enter into City Support Agreements (CSA) with respective cities for the redevelopment of stations and commercial development on Railway land in alignment with the Smart City Plans of respective cities.
RLDA will lease out the land to the SPV for a fixed lease period of up to 45 years at a nominal token cost for development and NBCC as Project Management Consultant will execute the project work on behalf of SPV.
Earnings from the commercial development of land parcels at stations will be utilized to redevelop the stations for creating necessary infrastructure and better passenger amenities. The surplus earnings will go to RLDA which would in turn would be remitted to Zonal railways.
The entire revenue from lease revenues from built up spaces will be deposited in an SPV’s ESCROW account which is to be managed by a Committee to be formed.
The Indian Railways has embarked on an ambitious project to redevelop 403 stations with the participation of private players, public sector and foreign agencies. It has taken up this redevelopment programme of stations in a big way by adopting a multi-pronged strategy. It has chosen PPP model and is also roping in varied agencies to execute the project namely its own PSUs, other Central government PSUs, foreign countries through government-to-government (G2G) cooperation and state governments. Earlier in October 2016, MoU was also signed between the Railway Ministry and Urban Development Ministry for integrated planning for redevelopment of railway stations in the cities included in the Smart Cities Mission and AMRUT schemes.
The Cabinet Committee on Economic Affairs (CCEA) has approved the disinvestment of 15% paid up equity of National Buildings Construction Corporation Limited (NBCC).
Decision in this regard was taken by CCEA meeting chaired by Prime Minister Narendra Modi in New Delhi. The disinvestment of 15% will done out of Union Government’s 90% shareholding.
- The disinvestment would result in estimated receipts of approximately 1,706 crore rupees to the Government.
- However, the actual realization amount of receipts will depend upon the market conditions and the investor interest prevailing at the time of actual disinvestment.
- The disinvestment would further broadbase NBCC’s shareholding and enhance the disinvestment receipts for Government utilization as per Disinvestment Policy.
About National Buildings Construction Corporation Limited (NBCC)
- NBCC was incorporated in November 1960 as a wholly owned Union Government enterprise under the administrative control of the Union Ministry of Urban Development.
- It was incorporated with the objective of becoming a leading company in the field of engineering, construction, and project management consultancy services.
- Presently, Union Government holds 90% of the equity i.e. 54,00,00,000 shares and the balance 10% of the equity is held by the Public.
- The NBCC IPO was launched in March, 2012, when the Union Government had divested 10% paid up equity capital of NBCC out of its 100% shareholding.