National Buildings Construction Corporation (NBCC), the largest public sector construction company, is expanding into the real estate space and also looking for an opportunity to foray into power generation. The company is implementing housing projects in cities like Kolkata and Patna and has lined up similar projects in Gurgaon, Khekra (West UP) and Cochin. NBCC chairman and managing director Vishnu P Das discusses with FE?s Noor Mohammad his company?s activities. Excerpts:

NBCC is expanding its presence in the real estate sector. How is this business doing?

We have housing projects lined up in various cities, including Gurgaon, Baghpat and Cochin. We also have ongoing housing projects in Kolkata and Patna. We are developing a commercial complex in Okhla. We have also issued expressions of interest for the acquisition of land across the country.

As regards our ongoing projects, we are building eight residential towers in Kolkata, four of which have already been handed over to residents. We are also building 98 flats in Patna under the first phase. The second phase will be launched by the end of this year.

In Gurgaon, we have two pieces of land, one in sector 69 and one in sector 37 D. Some 400 flats will be built in sector 69 under the first phase, 90 units will be constructed in second phase. All clearances have been obtained and construction would begin in June or July. In sector 37 D, 1,200 residential units will be built.

We have got 40 acres in Khekra in Uttar Pradesh on the Loni-Baghpat road. We plan to build 1,316 houses there in the first phase. Construction work is already under way. In the second phase, over 1,500 houses will be constructed.

We have another piece of land in Cochin. We plan to build 308 units there.

The West Bengal government has allotted us five acres in the Rajarhat area near Salt Lake for the development of a township. We expect to launch the project by October. We are building a commercial complex on a two-acre land in Okhla, for which sale offers will be made soon.

You also have plan to foray into power generation. How is the progress?

Yes, we are trying to get into power generation. To start with, we want to set up a 100 mw plant. But as of now, there is not much progress in this direction.

You have only recently taken up this job. What are your priorities?

Developing real estate projects, both residential and commercial, is our top priority. The thrust will be on ensuring quality workmanship, timely delivery and reasonable cost. Finding opportunity to diversify into power generation is also a high priority for us.

Is NBCC also on the government?s disinvestment list?

No, we have not received any communication from the government in this regard. But we have on our own submitted a proposal to the administrative ministry.

How has been your company?s financial performance in recent years?

Our total income has grown 29% CAGR (compounded annual growth rate) between 2000 and 2010. Our profit after tax increased 53% CAGR during the same period. Our net worth grew 236% CAGR.

Our total income was R3,020 crore in the financial year 2009-10, which we expect to increase to R3,800 crore by 2011-12.