Will earn 10% construction cost in IIPA project: NBCC

National Buildings Construction Corporation Ltd. (NBCC) has signed an MoU with IIPA for the redevelopment of a campus at cost of Rs 435 crore.This is a self-revenue generation model where the company's margins will be 10 percent of construction cost and 2 percent on sale value, says Anoop Kumar Mittal, Chairman, NBCC.Speaking to CNBC-TV18, Mittal says the project will be completed within 24 months and will start construction by the end of this year, adding, “Because next three to four months are required to get approvals from local bodies and to prepare the designs and drawings.”Below is the edited transcript of Anoop Kumar Mittal's interview with Reema Tendulkar and Mangalam Maloo on CNBC-TV18. Reema: You have recently executed an memorandum of understanding (MOU)with Indian Institute of Public Administration (IIPA) for the redevelopment of a campus at the cost of Rs 435 crore. Could you give us some more details on the margins which NBCC is likely to earn from this project?A: This is redevelopment of IIPA campus in Delhi which is near ITO. Its campus is about seven acre with an existing institute and residential complex. They want to get it redeveloped through National Buildings Construction Corporation Ltd. (NBCC) and we have signed this agreement with them. As per this agreement, NBCC will get 10 percent agency charges on execution of this project and we will also get two percent charges for marketing and sale of the product.So, the project is self-revenue generation model like we did New Moti Bagh or we are doing Kidwai Nagar and some other projects, so NBCC’s margins will be 10 percent on construction cost and two percent on sale value.Mangalam: When are you likely to complete this project by?A: We have agreed for 24 months of execution time for this project. This project should start by end of this calendar year, say December, because next three to four months are required to get the approvals from local bodies and to prepare the design and drawings. Reema: NBCC recently has announced a slew of orders in the last two months, how is the order book shaping up and could you split that up between PMC, that is project management as well as the redevelopment projects for us?A: By end of June, our outstanding order book was about Rs 26,000 crore which is mainly from PMC business except Rs 4,000 crore from East Kidwai Nagar because redevelopment order book we are not considering in this outstanding order book. We have signed the agreement with Delhi Development Authority's (DDA) which is on Karkarduma project and lake view project, not included in our order book, it is about Rs 7-8,000 crore in addition to Rs 26,000 crore. IIPA we have alos not included redevelopment projects in Rajasthan and Orissa, so purposely we are not including redevelopment projects in this order book.