NPCC eyes Rs 2000 cr turnover in three yrs

Having accumulated losses to the tune of Rs 687 crore in last 18 years, public sector National Projects Construction Corporation Ltd (NPCC) has embarked upon a revival plan and is eyeing a turnover of Rs 2,000 crore in the next three years.

"NPCC is on a revival path and previous financial year results show that the sick PSU has turned into a profit-making entity. We are anticipating even better results this financial year and expect to close the year with more than 70 per cent revenue growth," said Arbind Kumar, chairman and managing director, NPCC.

The corporation had closed previous financial year at Rs 2.26 crore net profit, as against Rs 71 crore net loss in 2004-05.

NPCC is anticipating new orders worth Rs 2,000 crore in this financial year and a turnover exceeding Rs 900 crore as against a turnover of Rs 578 crore in 2005-06, he said.

"The company is well placed to achieve a turnover of Rs 2,000 crore in the next three years with more than 100 big and small projects underway across the country," he said. NPCC has accumulated losses of Rs 687 crore as on March 31, 2005. The company owes Rs 517 crore as loan and interest on it to the government. On the loan of Rs 220 crore, the interest amount has swelled to Rs 297 crore.

Anticipating a turnaround in the company's fortune, the UPA government has put on hold the previous NDA regime's decision to disinvest government holding in NPCC and had referred the matter to Board of Reconstruction for Public Sector Enterprises (BRPSE) for its revival.

BRPSE, in its report on NPCC's revival, has recommended a waiver of interest on the loan provided by the central government and divesting stake in the corporation. It has also suggested conversion of government loan into equity. In addition, BRPSE has recommended a financial aid of Rs 60 crore to the corporation for paying salaries and statutory dues of provident funds to employees.The corporation also had a few other loans and interest liability from banks and PSUs.