NBCC to sell unused FAR of Amrapali projects for Rs 1,500 crore

State-run NBCC (India) Limited is expected to raise Rs 1,500 crore from the sale of unused floor area ratio (FAR) in the housing projects of embattled real estate developer Amrapali Group, said a senior official.

NBCC recently invited bids for sale of unused FAR at Princely Estate at sector 76 Noida with a reserve price of Rs 40 crore.

“We will see the response from the first bid and then invite the developers to monetise other land parcels we have at Amrapali properties. This was the smallest land parcel, and we have four-five big land parcels, which we will monetise in phases,” said a senior NBCC official, who did not wish to be identified.

SBICAP Ventures Ltd has already committed Rs 650 crore for six projects while other private and public sector banks have agreed to infuse another Rs 1,500 crore.

In addition, NBCC has invited bids to sell 5,192 housing units in Noida and Greater Noida, valued at Rs 2,182.57 crore.

NBCC is involved in the completion of 23 Amrapali housing projects, the cost of completion of which is estimated at about Rs 8,500 crore.

“The construction at the sites has picked up pace and we have scheduled the funding in a way that construction will continue as per schedule. Many banks are also willing to fund the project and homebuyers are also paying the balance amount,” said the official.

Earlier, NBCC was struggling to fund the construction and many contractors had written to the corporation threatening to stop the work as payment for work was not released for four months.

ET had reported that about 40,000 homebuyers in Amrapali’s properties were likely to face further delay in delivery of their houses, as the contractors working on the projects had threatened to stop work after continuous delays in payments from NBCC.