NBCC to submit detailed project report on 22-acre land of Vizag Steel Plant by month-end

NBCC (India), formerly National Buildings Construction Corporation Ltd. is gearing up to submit the detailed project report (DPR) on the redevelopment and monetisation of land belonging to Vizag Steel Plant. The state-owned firm is all set to hand over the report to Rashtriya Ispat Nigam Limited (RINL) by the end of June.

Earlier in February 2021, the NBCC had entered a Memorandum of Understanding (MoU) with Vizag Steel Plant to redevelop the latter’s 22.19-acre land at Maddilapalem. The redevelopment and monetisation would be undertaken on a self-sustainable model. “NBCC shall be paid Project Management Consultancy (PMC) fee at 7 percent of the estimated/approved project cost or actual project cost (whichever is lower),” the company said in a regulatory filing. NBCC will also get a project marketing fee of 1 percent of actual sale proceeds on account of expenditure towards the appointment of the real estate consultant, publicity, marketing, and sale of commercial, and residential spaces.

Reportedly, post-signing the agreement, the RINL asked the construction company NBCC to conduct a detailed project report to ascertain the value of the land in Vizag. The Steel Plant is expected to generate Rs 1,000 crore from the sale of its land parcel in Maddilapalem which is a prime location situated about 3-4 km from the beach. The National Highway, NH-16, which connects Howrah in West Bengal to Chennai in Tamil Nadu passes at a distance of about 2 km from the aforementioned site. Besides, the land is in proximity to tourist attractions like zoo, Simhachalam temple, and stadium.

RINL, under the Indian Ministry of Steel, owns and operates a 7.3 million tonne steel plant in Vizag. It is the country’s first shore-based integrated steel plant producing special steel products.