NBCC plans to enter power generation biz

National Buildings Construction Corporation (NBCC) is looking for an opportunity to foray into power generation business. The public sector construction major has bagged necessary approval from the administrative ministry, says its chairman.NBCC has been doing balance of plant (BoP) work, including civil construction and installation of equipment like chimney, cooling towers and coal and ash handling system for power projects for over 30 years."We have the know-how to set up power projects," NBCC chairman Arup Roy Choudhury said.

"NBCC's plan to get into power generation business has been approved by the ministry. We are now looking for an opportunity to develop projects, especially small and medium-sized ones," Choudhury told Fe. There are two main routes to bag projects: a memorandum of understanding or though tariff bidding. NBCC plans to sign an MoU. "At this stage, we have no plan to participate in tariff-based bidding for allocation of power projects," Choudhury added.

NBCC plans to leverage its land bank its power generation biz. The current value of the land bank on the company's balance sheets is much lower compared to the prevailing market value. The company plans to get its land bank re-valuated, once it forays into power generation.

"We will get our land re-valuated when we start power generation business,"Choudhury said.In fiscal 2009, NBCC earned profit after tax of Rs 159 crore on a turnover of Rs 2,041 crore.