NBCC India Ltd. which is the acronym for National Buildings Construction Corporation has proclaimed on Thursday, that is, on 4th March 2021, that NBCC is signing an agreement with RINL which stands for Rashtriya Ispat Nigam Ltd. RINL is also known by the name of Vizag steel. NBCC works mainly in three major segments and one of them is the redevelopment and restructuring of government undertaking properties. While RIL is also a Public Sector Undertaking (PSU) and is a state-owned Steel Producer and operates around 7.3 million tonne steel annually in the headquarter which is located in Visakhapatnam. Let’s talk about the agreement in more little detail.
The RINL is selling its 22.19-acre land property to NBCC under an agreement. The land is situated in Vishakhapatnam, Andhra Pradesh and is a famous tourist spot. From the sale of their 22.19 acre of land, RIL is anticipating to gather Rs. 1000 crores. The current Market price of the land is roughly Rs. 1 lakh per square yard. The reason why RINL is selling its land property is that currently as per the financial statement of the company, RINL has a net debt of around Rs. 19,592 crore for the FY 2018-19.
As per the expert’s opinion, currently, the company is estimating losses as the production cost of producing steel per tonne with coking mine and absorbed iron ore is much less as compared to the production cost to producing steel without absorbed iron ore. RINL produces special steel products. As per the source, the exact location of the land that RINL are going to sell to NBCC is one of the top locations at Maddilapalem. A beach is also located near the property and is hardly 3 to 4 Km away.
The exotic land property also connects with NH-16 highway which connects West Bengal’s Howrah to Chennai, within 2 Km distance. Likewise, the property is close to various tourist spots, which includes, the famous Simhachalam Temple, a Zoo, stadium and various other spots. The valuation of the project will be determined on the basis of analysis and a detailed project report shall be prepared thereon by NBCC. The project report will be then submitted to the RINL by NBCC. The project of restructering and redeveloping the land undertaken by NBCC will be based on the self-sustainable model. For a more detailed update regarding the same, follow our page.
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