MoU signed with Bihar government departments

NBCC has signed an MoU with departments of the Government of Bihar for four redevelopment projects in Patna under Phase-I. Two BSHB colony redevelopments (Sector 5 TV Tower and Sector 6 Bahadurpur) together give 3,331 flats for EWS, LIG, MIG and HIG categories; plus an IT Tech Park at Gardanibagh (first in the State) and hotels/commercial spaces at the Water Resources Department site, Bailey Road. Expected sale/lease proceeds: Rs. 5,152 crore (approx.) tentative project cost Rs. 2,000 crore (approx.) excluding GST. Self-financing, no State budgetary assistance. PMC charges 6%, marketing fee 1.25%. Adds a sizeable development & PMC assignment in a state capital — diversified mix of residential (3,331 flats), commercial, IT park and hospitality assets. Estimated proceeds (~Rs 5,152cr) materially exceed stated project cost (~Rs 2,000cr), implying scope for healthy margins if NBCC captures development upside or strong fees. Self‑financing and no state budgetary support reduces political/budget risk for Bihar, but shifts financing and execution risk onto NBCC or its selected SPVs/partners. PMC fee of 6% plus 1.25% marketing indicates recurring fee revenue plus potential development margins — strengthens services revenue and balance‑sheet cash flows while limiting need for NBCC to act as pure upfront contractor. Project delivery will be phased and construction‑intensive; execution risk, working capital needs and land/clearance timelines will determine near‑term cash conversion and margin realization.