HYDERABAD | Dec 11, 2017: Infra major NCC Ltd expects to start development and operation of Talaipalli coal block from 2019-20 onwards and contribute about Rs 190 crore to topline during the first year of its commercial operation.
The company is also betting big on infrastructure and housing projects from Amaravati, the new capital of Andhra Pradesh which is under development stage.
The Talaipalli coal block is located in Chhattisgarh.
"The work (on the project) will start in FY18. Commercial production may start from 2019-20. In the first year of commercial operations, we are aiming at 4 million tonnes of coal extraction and supply," Y D Murthy, Executive President (Finance), NCC Ltd, told PTI.
"We are looking at a topline of Rs 380 crore (from the block), in which our share will be Rs 190 crore," he said.
A consortium of NCC-BGR has been awarded the project relating to mine development and operation (MDO) of the block allotted to NTPC Ltd
The project will be executed by a special purpose vehicle, to be formed between NCC Ltd and BGR Mining and Infra Ltd, with a sharing ratio of 51:49, Murthy said.
"The peak rated capacity of the mine is 18 million tonnes per annum to be achieved by the 5th year of commencement of operation.
"The value of the project is in the order of Rs 25,071 crores and the annual revenue at rated capacity is about Rs 1,000 crore at current prices," a statement from the company had earlier said, adding the contract provides for escalation of mining fees.
On the order book, Murthy said during the last seven months of the current fiscal, NCC got nearly Rs 15,000 crore worth of orders and expects that the total order value to reach around Rs 28,000 crore by the end of FY18.
"Our core areas, like buildings, are doing very well, particularly in Andhra Pradesh, the core capital city formation (in Amaravati) and all. Orders are being awarded and some more orders will come.
"The core capital city like assembly building, secretariat, the High Court...they are going to call the tenders now. They have divided the packages. Those packages also, we are in a nice position to participate in. Each order will be around Rs 500 crore and above. Very few companies were pre-qualified to bid for these projects," he explained.
Murthy said the company's building and construction, water pipelines and roads verticals, put together, will constitute 75 to 80 per cent of the total order book as well as topline of NCC.
NCC Urban, a subsidiary of the company, has got a land bank of 210 acres spread in Bengaluru, Hyderabad, Kochin, Ranchi, Chennai and Visakhapatnam.
(Source: https://economictimes.indiatimes.com/)