Punj Lloyd, a global EPC player in the energy and infrastructure sector, has abandoned its ambition to become a real estate developer.

In a latest development, the company ended its two-year-old joint venture with NCR-based realty firm Ramprastha group.

Under the deal, Ramprastha group will acquire Punj Lloyd's 50% stake in the joint venture company that was supposed to develop 29-acre residential project in Ghaziabad.

It should be recalled that Punj Lloyd had signed a memorandum of understanding (MoU) with the Ramprastha Group in August 2007, to set up a 50:50 joint venture (JV) for developing a multi-storied residential housing complex.

According to market experts, a bad real estate environment has prompted the company to take this decision. However, Punj Lloyd said that it will continue to take housing construction orders.

In recently announced quarterly results, Punj Llyod has reported a loss of Rs 253 crore, due to the negative impact of around Rs 220 crore incurred on a litigation between UK-based subsidiary Simon Carves and SABIC Petrochemicals.

Punj Lloyd is the second largest engineering and construction companies in India, which provides integrated design, engineering, procurement, construction and project management services for energy and infrastructure sector projects.

The shares of company were trading at Rs 172 on BSE, up 7% compared to previous close of Rs 161.