 "Infra investments: Getting the mojo back")
Uttar Pradesh government arm Rajkiya Nirman Nigam Limited (RNN) will now bid for global building and infrastructure projects for increasing its topline revenue and profitability.
UP deputy chief minister Keshav Prasad Maurya, who also holds the state public works department (PWD) portfolio, has directed the RNN officials to float a global tendering wing to proactively bid for such projects going forward.
Currently, the RNN has the self acclaimed capacity of undertaking infra projects totalling Rs 5,000 crore annually, which Maurya underlined should be leveraged to augment the profit score of the state PSU.
Established in August 1975 with a capital of Rs 5 lakh, RNN’s current net worth is estimated at Rs 1,486 crore.
At present, the Corporation is in the process of completing various infra projects in UP and other states. So far, it has successfully handed over projects in Telangana and Rajasthan, apart from prestigious projects in UP including the new High Court building in Lucknow, which cost nearly Rs 1,400 crore, and the UP Police headquarters costing Rs 685 crore.
Presiding over a meeting here last evening, the deputy CM asked RNN to diversify its portfolio, and to fix and strictly adhere to the project timelines for earning a reputation of meeting project milestones.
Meanwhile, the PWD is working on providing reservations in the award of civil works of up to Rs 40 lakh to the disadvantaged sections. Under the proposal, the other backward castes (OBC), scheduled castes (SC), scheduled tribes (ST) and the poor belonging to the general category will get a quota of 27 per cent, 21 per cent, 2 per cent and 10 per cent respectively in future projects.
At the same time, the civil works in the RNN and the UP State Bridge Corporation will also have a similar quota facility, for which the draft is being prepared for approval.
Meanwhile, Maurya stressed on improving the organisational structure of the RNN by addressing the manpower gap and analysing the revenue and profit statistics every month for prompt remedial actions. He warned against awarding contracts to the blacklisted firms.
In 2017-18 financial year, the RNN clocked a turnover of Rs 3,700 crore, which was 82 per cent of the annual target of Rs 4,500 crore. Its highest annual turnover was achieved in 2016-17, when the Corporation posted revenues of Rs 5,465 crore, which was 126 per cent of the year’s target of Rs 4,350 crore.
