UPA follows CMP: NBCC taken off divestment block

‘‘The decision was taken as per the policy of the Common Minimum Programme. Though NBCC is not a mini-ratna, it has shown a turnaround in its performance over the last one year,’’ a senior official in the Urban Development Ministry said.

Considered to be a stone around the Ministry’s neck till last year, the BJP-led NDA government had decided to disinvest 74 per cent equity in the NBCC on April 15, 2003. And, the NBCC, as a PSE to be disinvested, was prominently displayed on the Ministry’s website for over an year.

Following the CCEA’s decision to take the PSU off the disinvestment block, Urban Development Minister Ghulam Nabi Azad held a day-long meeting to chalk out a plan to restructure NBCC.

‘‘They have been clearly told to make optimum use of its workforce, generate new jobs and introduce corporate work ethics,’’ sources said.

The consultancy-cum-project management company is involved in 40 projects in the North-East, worth Rs 455.64 crore. It is putting up fences along the Indo-Bangladesh/Indo-Pak border — a project worth Rs 500 crore. This apart, it’s also doing a number of construction work, worth Rs 450 crore, for the Defence Ministry.

‘‘In view of the improved performance, we are of the opinion that the (NBCC) disinvestment proposal should be reviewed. We have put in a proposal, let’s see,’’ a senior NBCC official said.

Among other things, the PSE has suggested conversion of its long-pending liabilities into equity and setting off the accumulated loss against the equity, assistance for VRS package, et el. It has also asked permission to give prime land in metros for real-estate development.

The NBCC would also diversify into commercial real estate ventures and go into construction business abroad.

In the note prepared for the CCEA meeting, the NBCC underlined its bright prospect ahead. It’s orders on hand has jumped from Rs 387 crore (in 2000-01) to Rs 2,400 crore (in 2003-04) and its earning per share has gone up from Rs 20.75 crore to Rs 66.67 crore.