+
NBCC establishes shadow lender to help save over $100 mn
ECONOMY & POLICY

NBCC establishes shadow lender to help save over $100 mn

India's state-run NBCC plans to establish its own non-banking finance company (NBFC) later this year in order to reduce its borrowing costs for key infrastructure projects. The sources, who preferred not to be named as the discussions are private, stated that the construction and real estate developer anticipates that this move will enable it to save $ 108 million in interest costs over the next two years.

It was noted that while the Indian government owns infrastructure financial institutions, no other state-run company has taken steps to create a unit to aid in financing projects.

NBCC's board deliberated the proposal to establish a shadow lender in March. As per the second source, the final structure of the NBFC will be determined after June.

It was further conveyed that NBCC will seek approval for the shadow bank from the new administration to be elected in June, following the conclusion of the seven-phase national polls that commenced on April 19.

Moreover, it was indicated that the company will require a license from the Reserve Bank of India (RBI), though it has yet to submit an application for it. NBCC did not respond to emails requesting comments. According to the first source, NBCC currently pays borrowing costs of 12% to 14% to other NBFCs, and this could potentially be reduced by 1-2 percentage points if it establishes the NBFC.

"The in-house NBFC will aid in obtaining initial funding for redevelopment and monetization projects of other public sector entities," stated the first source.

It was noted that NBCC recently acquired redevelopment projects from Steel Authority of India and the Indian Railways.

India's state-run NBCC plans to establish its own non-banking finance company (NBFC) later this year in order to reduce its borrowing costs for key infrastructure projects. The sources, who preferred not to be named as the discussions are private, stated that the construction and real estate developer anticipates that this move will enable it to save $ 108 million in interest costs over the next two years. It was noted that while the Indian government owns infrastructure financial institutions, no other state-run company has taken steps to create a unit to aid in financing projects. NBCC's board deliberated the proposal to establish a shadow lender in March. As per the second source, the final structure of the NBFC will be determined after June. It was further conveyed that NBCC will seek approval for the shadow bank from the new administration to be elected in June, following the conclusion of the seven-phase national polls that commenced on April 19. Moreover, it was indicated that the company will require a license from the Reserve Bank of India (RBI), though it has yet to submit an application for it. NBCC did not respond to emails requesting comments. According to the first source, NBCC currently pays borrowing costs of 12% to 14% to other NBFCs, and this could potentially be reduced by 1-2 percentage points if it establishes the NBFC. The in-house NBFC will aid in obtaining initial funding for redevelopment and monetization projects of other public sector entities, stated the first source. It was noted that NBCC recently acquired redevelopment projects from Steel Authority of India and the Indian Railways.

Next Story
Technology

Six ways a smarter workflow leads to faster, more accurate bids

In today’s fast-paced civil construction environment, estimators need more than just solid numbers. They need smart, streamlined processes. This article explores six key ways connected workflows can transform the estimated approach, help in minimising risk, move faster, and improve accuracy. By integrating tools, data, and teams, one can produce stronger bids with less rework, fewer surprises, and more confidence. As an estimator, the job goes beyond producing numbers. They are responsible for delivering bids that are fast, accurate, and built to win. In today’s civil construction ind..

Next Story
Real Estate

Experion Launches Women-Only Co-Living Project in Greater Noida

Experion, part of Singapore-based AT Capital Group, has launched its first co-living space under its managed rental housing brand, VLIV, in Greater Noida. The all-women residence features 730 twin-sharing beds with a strong focus on safety, comfort, and well-being. VLIV has committed a $300 million investment to create a structured, service-led rental housing ecosystem in India. The brand aims to scale up to 20,000 beds in the next few years, with a long-term target of 100,000 beds nationwide. “India’s rental housing is fragmented. VLIV is our way of building long-term, dependabl..

Next Story
Infrastructure Urban

Officine Maccaferri Acquires CPT to Bolster Tunnelling Tech

Ambienta’s platform company, Officine Maccaferri S.p.A., has acquired CPT Group, a leading Italian developer of robotic prefabrication systems and digital control technologies for mechanised tunnelling. The move positions Maccaferri as a global player in integrated tunnelling solutions, blending traditional and advanced mechanised systems. Based in Nova Milanese, CPT serves major global contractors across Europe, Southeast Asia, and Australia. The company offers robotic prefabrication (Robofactory), productivity-monitoring software for Tunnel Boring Machines (TBMs), and eco-designed spa..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?