Millennium Post

Housing finance giant Hudco ups annual profit by 6.9% to Rs 777 cr

The total sanctions for the year were 31 per cent higher at Rs 21,094 crore against the MoU target of Rs 16,100 crores. In respect of disbursements, a total amount of Rs 8,100 crore was disbursed against a target of Rs 7,300 crore. 

With this, the cumulative disbursements crossed Rs 1 lakh crore rupees and marked a major mile stone. A total of 4.86 lakh residential units have been sanctioned for various sections of society against the annual target of 4.23 lakh units for the year 2014-15.  

The major schemes sanctioned for housing cover the Lohia Awas Yojana in Uttar Pradesh for 60,000 houses, Atal Aashray Awas Yojana in Madhya Pradesh for 1 lakh houses, additional loan assistance for IAY beneficiaries in Kerala for 1,49,700 families and rehabilitation and resettlement of project affected/ displaced families of Upper Krishna project in Karnataka for 50,832 families. A housing scheme for weaker sections in Vadodara for 6,096 houses has also been sanctioned.  

Further, nine housing projects for a total of 20,158 units in nine district panchayats of Rajasthan have also been sanctioned. In the field of urban infrastructure projects, Hudco has sanctioned a total of 121 projects for a total loan amount of 14,426 crore covering utility, social and commercial infrastructure.  

Some of the major infrastructure projects sanctioned, include a state water grid for Telangana State (Rs 2,500 crore), land acquisition and development for the information technology investment region in Karnataka (Rs 1,000 crore), land acquisition and infrastructure development for Naya Raipur (Rs 750 crore),  and improvement of state highways in Uttar Pradesh (Rs 1,090 crore).

During 2014-15, Hudco moblised total resources aggregating Rs 5074.37 crore at a weighted average borrowing cost of 8.18 per cent (ie 38 bps above 10-year GSec as on 31.03.2015). In the financial year 2014-15, Hudco has sanctioned two schemes in the State of Uttarakhand for Hudco KfW grant of Rs 138 lakh and Rs 17.5 lakh has been released under the Model Village / Basti Scheme.

With a view to mobilise a culture of Innovation and continued focus in rolling out innovative products, the company made effort to sensitise employees at all levels with the organisation and the employee training forums are converged towards reaching this objective. 

For the MoU signed by Hudco with MoHUPA for the year 2014-15, Hudco’s internal assessment shows that it is expected to achieve ‘Excellent’ rating in 27 of the total 28 MoU parameters in 2014-15. Thus, overall Hudco is expected to achieve ‘Excellent’ MoU rating for the year 2014-15.

As part of promoting innovative products and initiatives, Hudco has launched a new scheme for providing concessional funding to public agencies for taking up senior citizens’ homes, with appropriate senior citizen-friendly design and related facilities. It is advocating for availing larger quantum of funds from Hudco by state governments and urban local bodies, by leveraging the accumulated pool of funds that accrue to ULBs at State level such as VAT, etc. 

The guidelines for the mechanism of funding ‘Programme Assistance to State / ULBs for development of Housing & Urban Infrastructure’ was approved by Hudco for faciliting the state governments/ ULBs to leverage substanial quantam of long-term loans against the corpus of ‘Fund’ created from specified source for development / improvement of non-remunerative components necessary for cities and towns based on the prioroity. 

To ensure financial inclusion of poor and self-employed women in slums and informal settlements, who have so far been denied the benefit of home loans through the formal lending mechanism, Hudco has joined hands with Sewa through equity investment of Rs. 1.8 crore in the new Housing Finance Company Sewa Grih Rin Ltd , which has been registered as HFC by NHB recently. 

During 2014-15, 28 training programs consisting of 27 Capacity Building Programmes for Urban Local Bodies and one international programme have been conducted, covering 725 Indian and 20 international professionals.
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