NBCC owes dues totalling Rs 1,668 cr to vendors
NBCC Ltd owes around Rs Rs 1,668 crores to its vendors, the Ministry of Housing and Urban Affairs informed the Lok Sabha
November 23, 2019
Government-owned NBCC Ltd owes dues totaling Rs 1,668 crores to its vendors, the Ministry of Housing and Urban Affairs informed the Lok Sabha. The response was furnished by Union Minister Hardeep Singh Puri in response to a question asked in the Lok Sabha. Puri also added that the figure does not include the amount over which arbitration is underway.
Why does NBCC owe dues to vendors?
The Ministry said that the pendency is largely because NBCC is yet to recover dues from some of its clients. “This pendency is mainly attributable to the delay in receipt of funds from clients because of various reasons such as pending approval for deviations, extra items, substitute items, escalation and extension of time from clients, non-submission of documents as per terms and conditions of contract by the contractors etc,” Puri said.
Data on the NBCC website showed that the state-run company’s clients include ministries of the central government, state government and government agencies.
Rs 83 cr under arbitration
The data also showed that a total of Rs 83 crore is under arbitration. Adding this to the total figure takes it to Rs 1,751.79 crores. The largest payment that NBCC is yet to make is Rs 50.96 crore to a contractor for the construction work of the Institute of Archaeology and UNESCO Category-II Centre at Greater Noida. NBCC also owes dues to several vendors involved in the construction of the Indo-Pak border fencing in the Rann of Kutch, Gujarat.
The news comes just days after PSU Watch reported
that even though state-run NBCC’s order book stands at Rs 84,000 crores, projects worth Rs 34,000 crores are stalled. This works out to around 40.48 percent of the total order book.
NBCC is a top contender to takeover and finish major stalled projects in the real estate sector, including Jaypee Infratech, and has been asked by the Supreme Court to complete the stalled projects of Amrapali.