NBCC establishes shadow lender to help save over $100 mn

23 Apr 2024 CW Team

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.

Equipment

12 Dec 2025

Schwing Stetter India Unveils New Innovations at Excon 2025

Schwing Stetter India unveiled more than 20 new machines at Excon 2025, marking one of its most significant showcases and introducing several India-first technologies to the construction equipment sector. The company launched the country’s first 56-metre boom pump designed and manufactured in India, the first fully electric truck mixer, the first CNG mixer variant and the first hybrid boom pump. Executives said the launch portfolio was engineered to support India’s move toward faster, greener and more vertically oriented infrastructure through advanced engineering, clean-energy solutions a..

SEPC Resolves Hindustan Copper Dispute, Wins Rs 725 Mn Order

Engineering, procurement and construction firm SEPC Ltd has recently settled a dispute with Hindustan Copper Ltd (HCL) and secured a mining infrastructure order valued at Rs 725 million from the state-owned company. SEPC informed the stock exchanges that it has executed a settlement deed with HCL, bringing closure to all inter-se claims and counterclaims arising from arbitration proceedings. As part of the settlement, SEPC will receive Rs 304.5 million as full and final payment, marking the resolution of all pending disputes between the two entities. The company also stated that Hindustan Co..

20% Ethanol Blending Cuts India’s CO2 Emissions by 73.6 Mn Tonnes

Union Road Transport and Highways Minister Nitin Gadkari recently said that India has reduced carbon dioxide emissions by 73.6 million metric tonnes due to the adoption of 20 per cent ethanol blending in petrol. He made the statement while replying to supplementary questions during the Question Hour in the Lok Sabha. Describing ethanol as a green fuel, the minister said it plays a key role in reducing pollution while also supporting higher incomes for farmers. He underlined that ethanol blending contributes both to environmental sustainability and rural economic growth. Nitin Gadkari also po..