Burn Standard and NBCC to Develop Premium Housing in Alipore
Burn Standard Company Ltd. is seeking to generate funds by capitalizing on its real estate holdings in Alipore, Kolkata. The company plans to sell an 11-acre plot to National Buildings Construction Corporation Ltd (NBCC) at the prevailing market rate, which will be assessed by an independent agency. NBCC intends to transform this land into a high-end residential complex.
The estimated market value of the 11-acre plot is anticipated to fall between Rs 110 crore and Rs 160 crore.
"We have agreed to pay Burn Standard at the current market rate after the valuation is done by an independent agency. NBCC will develop the project on a self-sustaining basis and the profits will be equally shared between the two. Since both are public sector companies, we do not see any problem," stated Arup Roy Choudhury, chairman and managing director of NBCC.
However, the project, requiring approval, currently awaits the next Board for Industrial and Financial Reconstruction (BIFR) meeting scheduled for September 30. Burn Standard, currently under BIFR oversight, has a relief package exceeding Rs 1,500 crore.
The project also encounters logistical challenges, including relocating existing guest houses, residences, and offices currently situated on the property. Burn Standard's operations extend across West Bengal, Jharkhand, and Tamil Nadu.
NBCC's Expanding Real Estate Portfolio
NBCC is concurrently developing a Rs 1,500-crore, 38-acre integrated township in Mozakulai, near Howrah.
"Real estate is one of our major areas of focus in the coming years. We will be building complexes and townships across the country. Our township projects will be different as we plan to provide employment to the locals. Bengal is one of the states where we have a few projects lined up,” explained Roy Choudhury. The organization's focus on real estate development is projected to broaden in the upcoming years, with plans for complexes and townships nationwide. A distinctive characteristic of NBCC’s township projects will be their provision of employment opportunities for local communities.
The Mozakulai project, a 50:50 joint venture with RK Millen established through a memorandum of understanding in 2007, will incorporate a mix of commercial and residential spaces, IT parks, and shopping malls. It will also feature a dedicated employment center for local zari workers.