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NBCC needs 8500 crore to complete Amrapali Projects

According to proposal submitted by NBCC (National Buildings Construction Corporation Ltd) in Supreme Court, it will require about 8500 crore to complete 46,575 unfurnished flats and will take about three years to do so. The cost includes NBCC fee of about 774 crore. While selling off unsold flats can generate money to the tune of Rs 4,885 crore, the remaining Rs 3,853 crore would have to be raised to meet the total amount required to complete the flats left unfinished by Amrapali builders.

According to affidavit previously filed by Amrapali, it was informed that Rs 5220 crore are needed to complete all these projects. The major difference in the estimate cost of NBCC and Amrapali is in the completion of Leisure Valley Rs 500 crore approx. and Golf Home Rs 700 crore approx. NBCC will act as a project management consultant (PMC) while the construction and completion will be done by contractors. The company however clarified in the proposal that it will not be responsible for Amrapali’s liabilities.

As of now, NBCC has taken the burden of constructing the remaining unfinished Amrapali housing projects within the next three years.

September 5, 2018 / by / in , , ,
RBI increases repo rate by 25 bps to 6.25%

RBI hiked repo rate, the rate at which the central bank lends short term money to commercial banks, by 25 basis points (0.25 per cent) to 6.50 percent. This is expected to lead to higher interest rates on housing, auto and other personal loans. This is first time in nearly five years that RBI has hone for a back to back hike, having increased repo rate by 25 bps to 6.25 percent in its last policy meet in june. Last time RBI had increased the repo rate consecutively in 2013. Trade tensions, crude oil prices, poor economic activity, rising retail inflation have been considered as the primary factors behind the hike in repo rate.

I think that hike in repo rate will impact the real estate sector as the revised rate would result in costlier EMIs for the home loan.

August 3, 2018 / by / in , , , , , ,