State-run construction major NBCC (India) has dues of around Rs 1,668 crore towards its vendors, according to the Ministry of Housing and Urban Development.
The disclosure comes at a time when the company is a top contender to takeover and complete major stalled projects, including Jaypee Infratech, and has the mandate to complete the stalled projects of Amrapali.
In reply to a question in the Lok Sabha, Union Minister Hardeep Singh Puri quoted data provided by NBCC and mentioned that the amount of Rs 1,668 crore excludes the amount over which arbitration is underway.
The Minister of State for Housing Ministry said that pendency is largely because of delay in receipt of funds by NBCC from its clients.
"This pendency is mainly attributable to the delay in receipt of funds from clients because of various reasons such as pending approval for deviations, extra items, substitute items, escalation and extension of time from clients, non-submission of documents as per terms and conditions of contract by the contractors etc.," Puri said.
Data on the NBCC site showed that major clients of the Navratna company include ministries of the central government, state government along with government agencies.
As per the data, NBCC owes Rs 1751.79 crore to its vendors out of which Rs 83 crore is under arbitration. Few of the cases of major dues include an amount of Rs 50.96 crore that it has to pay to a contractor for the construction work of the Institute of Archaeology and UNESCO Category-II Centre at Greater Noida.
The PSU also owes dues to several contractors involved in the construction of the Indo-Pak border fencing in the Rann of Kutch, Gujarat. The highest NBCC owes to a contractor in the project is Rs 32. 43 crore.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.