Nagarjuna Constructions yesterday said it is considering four projects in the UAE, which includes the construction of an academic institution in Dubai.
"We are actively considering about four new projects. One of them is the construction of an academic institution in Dubai, which is a turnkey project and the total construction value is still not finalised. But it could be around Dh200 million," said Majoe Mathew, the India-based company's General Manager for UAE operations.
Nagarjuna Construction is working on projects worth several billions in the GCC, mainly in Oman and the UAE and its international division currently has an order book of more than Dh3 billion comprising road projects, water pipelines and infrastructure projects.
Mathew told Emirates Business that developers are pausing to take a better analysis of the existing financial situation and its long-term impact before proceeding with new developments.
"Most of our projects are with the government departments. We are also a bit careful about what we are accepting. There is no point in taking up projects, which could get considerably delayed due to lack of funding," said Matthew.
According to him the cost of construction in the region has reduced during the last month. "Steel was bound to fall as prices had been artificially hiked. Now we are seeing a mild correction. Diesel has also fallen, thereby significantly reducing the construction cost.
"However, the impact is not visible as many developers, due to lack of credit, are unable to start work and make use of the opportunity that is available now," he added.
Meanwhile, Nagarjuna Constructions has become one of the seven firms that have pre-qualified for the contract to build one of the dams at Al Amerat Heights.
According to reports, the contract is expected to be awarded in February, following which construction work on the first of a series of dams at the Wadi Adai Flood Protection System is expected to start.
The other companies that have pre-qualified for the contract include Strabag OmanStrabag Oman, Sinohydro Corporation, Consolidated Contractors CompanyConsolidated Contractors Company, Galfar , Sambu Construction and SEW- CGGC.
As per Sep 08 share holding pattern of the company (www.bseindia.com), Rakesh Jhunjhunwala is holding 6,250,000 shares and his wife Rekha Jhunjhunwala is holding 9,750,000 shares in Nagarjuna Construction