CHAPTER-VIII

8.1. Housing & Urban DevelopmentCorporation (HUDCO) Limited

Housing and Urban DevelopmentCorporation Ltd. (HUDCO) was incorporatedas a fully owned Government Company underthe Companies Act, 1956 with the mainobjective of financing Housing and Urbandevelopment projects in the country. In orderto achieve this objective, HUDCO finances avariety of housing and urban developmentprojects formulated by the State HousingBoards, Development Authorities,Improvement Trusts, Co-operative HousingSocieties etc. Over the years HUDCO hasemerged as the leading public financialinstitution with the major objective offinancing and encouraging housing and urbandevelopment activity in the country and hasdeveloped sound capabilities of projectpreparation, appraisal, financial planning andmonitoring.

For the purposes of the PerformanceBudget Report, the operations/performance ofthe organisation and the performancedescription have been categorised under threebroad heads:-

(i) Performance during the year 2000-O 1

(ii) Performance during the Current Year2001-02 (upto November 2001)

(iii) Future Plans/Outlook

8.2 Performance during the Year 2000-01

Operational Highlights

The dawn of the new millennium witnessedanother year of momentous operationalgrowth in the edifice of HUDCO be it inrespect of its performance, expansion of equitybase, streamlining of operations or fosteringstrategic collaborations. HUDCO surpassedthe allocated MoU targets, both in housing andurban infrastructure development and scaled

new heights of operational performance.During the year 2000-O 1, HUDCO sanctionstouched Rs. 7912.73 crores, over 19.90%above the target of Rs. 6600 crores. Theassistance has bean instrumental in supportingconstruction of over 3 1 lakh dwelling unitsand over 4 lakh sanitation units, and takingup 78 urban infrastructure projects throughoutthe country. The loan released during 2000-01 amounted to Rs. 4829.32 crores, surpassingthe MoU target of Rs. 4200 crores by 15% in2000-01.

Cumulativelytill 31st March 2001, HUDCOhas sanctioned a total of 14751 schemesinvolving a total project cost ofRs. 55354 crores with HUDCO’s loancomponent of Rs. 36837 crores. HUDCO’sassistance has helped in the construction of126.40 lakh residential units, over 46.66 lakhsanitation units and in the implementation of1840 urban infrastructure schemes effectivelyimproving the living conditions in the urbanand rural areas, in I760 towns and thousandsof villages.

HUDCO has contributed significantlytowards national development in the followingoperational areas:-

. ” House (including the 2-millionHousing program)

. Profitability with Social Justice:Emphasis on EWS & LIG

. Disaster Relief. Housing through NGO/CBO

initiatives. Rental Housing initiatives. Special initiatives in the North-Eastern

region. Initiatives in Rural Housing. Establishment of Model Villages/

Model Improved Slums

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. Urban Infrastructure Development,including:-

. Water Supply, Sewerage/Drainageschemes

. Waste management efforts

. Commercial Schemes, EnergyEfficient Projects

. Area Development Projects

. Transport Sector, Social Infrastructure

. Innovative efforts in UrbanInfrastructure Sector (ProjectInitiation Fund)

8.3 Financial Highlights

Like previous years, HUDCO hascontinued its tradition of being a profit-making organization with social focus and2000-01 has been another yet another year ofimpressive financial results. The profit (afterprior period adjustment but before non-recognising income in respect of loans whichhad become NPA) was Rs. 316.36 crores asagainst Rs. 3 11 crores for the previous year.After providing for income tax/wealth tax,Rs. 106.93 crores was available forappropriation. Out of the above, Rs. 20.87crorcs was paid as dividend to the Government

of India and Rs. 2.13 crores was paid asdividend tax. The rest was transferred to thevarious reserves. The Total reserves ofHUDCO at the end of 2000-01 stood at Rs.762.65 crores.

.8.4 Awards

HUDCO once again bagged the GoldMedal for the 5th year in a row at the IndiaInternational Trade Fair-2000, for its pavilion,the HUDCO Build-Tech-projecting theavailability of innovative and appropriatetechnologies and alternative buildingmaterials for housing, building and habitatdevelopment.

8.5 Performance during the Current Year2001-02 (Upto November 2001)

Performance Targets for the year 2001-02

The performance in any year is aimed atachieving/exceeding the targets as laid downin the Memorandum of Understanding signedbetween HIJDCO and the Ministry of UrbanDevelopment & poverty Alleviation. Thetargets laid down in the MoU form the basisof the overall operations that the organisationundertakes during the year. The targets andachievements for 2000-01 and for 200 l-02 areindicated below:-

S.NO. Performance Criteria

1 Resource Mobilisation

Target Achievement Target Achievement(2000-01) (2000-01) (2001-02) (2001-02)*

4000 5291 4350 1399

2 Loan Sanctions(a) Housing** 3600 3871 3900 130(b) Urban lnfrastructure 3000 4042 3250 621

3 Loan release(a) Housing 2700 2842 3000 558(b) Urban Infrastructure 1500 1987 1650 856

4 2 Million Housing Prog- --Units sanction

(a) Urban 4 lakhs 4.70 lakhs 4 lakhs(b) Rural 6 lakhs 7 .32 lakhs 6 lakhs 0.48

5 Evaluation by DPE

*For the year 2001-02 (upto November 2001)l * Includes Hudco Niwas

Very Good

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8.6. PHYSICAL PROGRESS

Dwellings Sanctioned During the Years2000-01 and 2001-02

The table below indicates the category-wisebreak-up of dwelling units sanctioned byHUDCO during the years 2000-01 and

2001-02 (upto November 2001). Over 96%of the dwellings sanctioned by HUDCO duringthe year 2000-01 and over 98% of the dwellingunits sanctioned during 2001-02 (uptoNovember 2001) are meant for familiesbelonging to EWS & LIG categories (includingupgradation), with monthly income notexceeding Rs. 5500/-.

S.No. Category

1 EWS (R)2 EWS (U)3 LIG4 MIG5 HIG/Rental6 Upgradation7 Hudco Niwas

2000-01No. of Units Percentage

6 2 0 5 0 3 2 0 . 0 3137423 4.43

5 6 5 9 0 .186713 022

17663 0 .572228950 71.96

80740 2.61

2001-02 (upto Nov. ‘2001)No. of Units Percentage

67000 26.85160054 64.15

20 0.012 8 0 0.11300 0 .12

18525 7 .423 3 4 9 I .34

I TOTAL 3097651 100.00 249528 100.00I J

8.7. The summarization of performance forthe current year has been made on the basisof activities/projects undertaken in thevariousareas such as Housing, Rural Housing, RetailH o u s i n g ( H u d c o Niwas), UrbanInfrastructure, Training & ResearchC o n s u l t a n c y , D e s i g n & D e v e l o p m e n t ,Community Development, Human ResourceDevelopment, Resource Mobilisation, etc.which are given below:-

. Lower the unit cost, higher is HUDCO’sloan component.

. Longer repayment period for EWS &LIG categories.

Night Shelter Schemes

(A) HOUSING

HUDCO’s housing operations have a majorsocial orientation with HUDCO having a clear-cut mandate to provide financial support foraffordable shelter to the EWS/LIG categories.55% of HUDCO’s loans are earmarked forEWS & LIG categories, out of which minimum15% of total loans are earmarked for ruralareas. This has helped in over 95% of thehouses sanctioned by HUDCO benefiting theEWS & LIG groups. The other significantprovisions that help the poor in gaining accessto shelter include:

During 1990-91, for the rehabilitation offootpath dwellers in the cities with over onemillion population, construction of night shelterswas taken up with Central assistance and withsuitable contribution by the Municipal bodies/States and loan assistance from HUDCO. Thescheme provides night shelter facilites inexclusive lots to single men, women andchildren living on pavements, depending on thecharacteristic needs of an urban centre.HUDCO has so far (upto 30.11.2001)sanctioned 110 schemes with project cost ofRs. 133.20 crores of which HUDCO’s loancomponent is Rs. 40.91 crores. Completion ofthese schemes will lead to creation of 18115beds, 25965 WC’S, 2086 baths and 1833urinals for the benefit of footpath dwellers.

. Lower interest rates for EWS & LIG Of the above, 4 schemes with a total project

categories. cost of Rs. 1.10 crores with Government of

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India, subsidy of Rs. 0.58 crores have beensanctioned during the current financial ,year2001-02 (upto 30.11.2001). On completion,these schemes would lead to creation of 271WC seats, 128 baths and 9 urinals for thebenefit of footpath dwellers.

8.8. Schemes for Land Acquisition andDevelopment of new Human settlements

Under these schemes, HUDCO’s loanassistance is available for acquisition as wellas for development of land. The scheme willhelp the housing agencies to orient theiractivities as “promoters” of houses. It isenvisaged that after land development stage,the public agencies may act as a catalyst andaccelerate total development of the new humansettlements and may undertake constructionof only EWS/LlG housing. The rest of thedeveloped land could be made available tocooperative sector, private builders, individualsetc., and some part could be reserved forshelterless service population where schemescould be implemented with the association ofNGOs and State Slum Improvement Boards.For the year 2001-02, a loan sanction targetof Rs. 275 crores was fixed for LandAcquisition schemes against which a total loansanction of Rs. 82. 10 crores as been achievedupto November 200 1.

8.9. HUDCO’s c o n t r i b u t i o n t oGovernment’s additional Z-MillionHousing Programme

As a part of the National Agenda, theGovernment has accorded priority to ‘Housingfor All’ and it was proposed to take upconstruction of 2 Million houses out of which13 lacs would be in rural areas and 7 lacs in

urban areas. HUDCO has been entrustedwith a task of funding one million houses everyyear, out of which 6 lakh houses are to befunded in rural areas and 4 lacs in urban areas.

HUDCO’s contribution to the 2 million

housing programme has been significant as

during the year 2000-01, HUDCO sanctioneda loan assistance of Rs. 578.87 crores forconstruction of4.70 lacs unitsagainst its targetof 4 lacs units in urban category. In the ruralcategory, HUDCO has sanctioned 7.32 lakhunits with a loan assistance of Rs. 643.32crores. During the current financial year i.e.2001-2002, so far HUDCO has sanctioned aloan amount of Rs. 47.94 crores forconstruction of 47938 units(as on 30. 11 .2001)in urban &rural areas. Cumulatively, HUDCOhas sanctioned a total loan amount of Rs.3550.76 crores for construction of 2834830units under 532 schemes in 14 States and UnionTerritories.

8.10. Initiatives in Rural Housing

HUDCO started its rural housing activityfrom 1977-78 by extending loan assistanceonaffordable terms for construction of ruralhouses, Every year HUDCO earmarks 15%of its funds for housing sector exclusively forfinancing EWS houses in the rural areas. Overthe past 24 years. HUDCO through its ruralhousing operations has been able to contributeto the construction of around 77.84 lacs ruralhouses in various states of the country.

In addition to its normal rural housingoperations, HUDCO has also been entrustedwith the task of funding one million housesevery year under the 2 million housingprogramme of Government of India launchedduring 1998. Under this programme, a targetof financing 6 lacs rural dwelling units has beenassigned to HUDCO. Till now on cumulativebasis, around 17.40 lakhs rural dwelling unithave been sanctioned under the programme.

Out of normal housing scheme allocationof Rs. 1750 crores for the year 2000-01 atentative allocation of Rs. 262.50 crores (15%)was made under EWS Rural housing category.Under 2MHP, for its rural component, a targetof6 lakh dwelling units was fixed with tentativeloan assistance of Rs. 600 crores. Thus, overalla target of Rs. 862.50 crores was fixed for

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financing rural housing schemes during thecurrent year. Against the allocated target, atotal of 70 rural housing schemes, envisagingconstruction of 23,75,817 dwelling units withHUDCO’s loan assistance of Rs. 1080.72crores were sanctioned during the year2000-01 Rs. 437.39 croresfornormal housingand Rs. 643.32 crores for 2 million housingprogram.

(a) Current year’s Loan SanctionAchievements

So far during the current years, a total of4 rural housing schemes in the state ofKarnataka, envisaging construction of 67,000dwelling units with HUDCO’s loan assistanceof Rs. 67 crores have been sanctioned undernormal as well as2 million housing progmmme,against the allocated target of Rs. 772.50crores.

(b ) C u m u l a t i v e Loan SanctionAchievement

On cumculative basis, a loan amount ofRs. 2889.79 crores has been sanctioned forthe construction of 6044186 rural dwelling untisunder normal housing programme and a loanamount of Rs. 1769.82 crores has beensanctioned envisaging the construction of1739443 rural dwelling units under2 millionhousing programme. Thus, overall a loanamount of Rs. 4659.59 crores has beensanctioned till date in various states across thecountry anticipating the construction of7783629 rural dwelling units.

(C) Retail Housing-Hudco Niwas

HUDCO Niwas scheme since its inception

in March 1999 has received an overwhelmingresponse from over 2.63 lakh applicants onaccount of its competitive terms, value addedservices and user friendly options, HUDCONiwas in its successive two years ofoperationshas achieved commendable results withsanctions touching a record Rs. 2328. 14 croresand disbursement crossing Rs. 1469.82 crores,

thereby emerging as the fastest growing retailfinancing scheme. During the year 2000-01alone, an amount of Rs. 1068.3 I crores wassanctioned for 80,704 applicants. During theyear 2001-02 (upto November 2001), a totalof Rs. 87.56 crores has been sanctioned to

more than 3287 beneficiaries through HUDCONiwas and Rs. 291.24 crores has beenreleased to the applicants so far during the year.

(D) Urban infrastructure financing

India’s successive Five Year Plans haveemphasized the need for multi-pronged efforts

in order to check the deterioration ofconditionsin our cities and towns and the need to devisespecial arrangements to assist in the orderlyand timely investments in urban infrastructure.The existing arangements are clearlyinadequate to deal with the growing deficit inurban services, both in terms of maintainingservices and extending them to un-serviced

areas. The acceleration in the rate ofurbanisation has heightened attention both tothe inadequacy in existing infrastructure interms of water supply, sewerage, sanitation,

solid waste management, conservancytreatment effluent, roads etc. and the poor

access to these services of a large populationat low income levels. Since the level of

urbanisation will continue to grow, the financialrequirements of urban development will alsocontinue to increase. If we seek to promoteefftcient and equitable urban growth, ways and

means have to be found to provide incentivesas well as control mechanisms for localauthorities to conserve resources while makingthe necessary investments in urbaninfrastructure and services. This necessarilyimplies a systematic financial structure which

increases the access of local authorities andfunctional agencies to capital funds alongwithan assumption of much greater financialresponsibility to make the former possible,

while improving the access of the urban poorto basic services like water supply andsanitation in an integrated spatial framework.

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Institutional finance for urban infrastructureis a new concept in India. The growth of urbansettlements during the past years has puttremendous pressure on urban services likewater supply, sanitation, drainage, solid wastedisposal, transportation etc. In order tosupplement the efforts for urban developmentincluding improvement ofservices, the Govt.of India decided to entrust the task of urbaninfrastructure financing to HUDCO, whichalready had necessary expertise to appraisesuch projects as well.

As the market leader in urban infrastructurefinancing, HUDCO continued extendingfinance for a variety of projects. During thelast financial year i.e. 2000-01, a total of 78UI projects were sanctioned with a totalproject cost of Rs. 6349.68 crores and aHUDCO loan component of Rs. 4039.45crores. Further, for supporting theinfrastructure projects, an amount of Rs.1986.88 crores has been released. The projectssanctioned include 16 water supply schemes,II sewerage/drainage/solid wastemanagement schemes, 5 commercialschemes, 6 area development schemes, 16transport schemes and 24 social infrastructureschemes. During the current financial year(upto 30.1 1 .2000), HUDCO has sanctioned 39UI schemes, having a loan amount of Rs. 2089crores and Rs. I I I I. I I crores has beenreleased to the borrowing agencies.Cumulatively, 833 UI projectshaving HUDCO loan componentof Rs. 16,292.86 crores have been sanctionedby HUDCO, out of which Rs. 8833.02crores have been released to the borrowingagencies.

In addition to providing long term finance forprojects such as water supply, sewerage/solidwaste management, transportation,commercial projects, social infrastructure, etc.under the infrastructure portfolio,HUDCO is also involved in the followingactivities for the development of urbaninfrastructure:-

(i) Providing consultancy services forfomulation of solid waste managementprojects;

(ii) Pfoviding project development initiationfund;

(iii) Involved in Central Governmentsponsored Integrated Low CostSanitation (ILCS) scheme byproviding financial assistance androuting GO1 subsidy to various StateGovernment agencies.

8.11. Integrated Programme for Low CostSanitation and Scavenger RehabilitationSchemes

In a concerted effort to eliminate the in-human practice of manual scavenging stillprevalent in the country, the Govt. hadprepared an action plan for implementing theprogramme for conversion of dry latrines towater-seal pour flush latrines. construction ofnew water-seal pour flush latrines where noneexist and simultaneous rehabilitation of thescavengers thus liberated, all over the countryon a ‘whole town’ basis.

. The centrally sponsored program ofILCS is being implemented throughHUDCO from 1989-90. The subsidyavailable from the Ministry ofWelfare for the purpose is transferredto HUDCO, which sanctions theamount together with its own loancomponent, to various nodal agenciesand local bodeies implementing theschemes of low-cost sanitation indifferent states of the country. Upto30th November 2001, a cumulativeloan amounting to Rs. 575.22 croreshas been sanctioned for thisprogramme.

8.12. Programme-Wise Performance(cumulative as on 30.11.2001)

The sector-wise information on schemessanctioned by HUDCO so far is given below:-

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(Rs. in crores) 8.13 Resource Composition

Programme No. of LoanIS c h e m e s Sancti-

oned

I. Water Supply 325 5109 .192 . sewerage 54 601 .683 . Drainage II 847.4 I4 . Solid Waste Management 19 216.60)5 . Transport Nagar/Terminals 25 682 .326 . Commercial 69 705 .087 . Social 1nfrastructure 91 1460.648 . Roads/Bridges 92 3698.3 I9 . IDSMT schemes 22 34.72I0. Area Development 107 1915.86I 1 Airports/Ports 8 378 .0712. Miscellaneous 4 642 .98

Total 833 16292.86

During the years, HUDCO has been ableto achieve a significant success in it’sresource mobilisation efforts. Mobilisation ofan all time high of Rs. 5291.01 corres wasachieved during 2000-01 as against Rs.3839.06 c ro res raised in 1999-2000,registering a growth of about 38%. Thismobilisation has been through a basket ofoptions covering both domestic andinternational sources.

During the current financial year 2001-02(upto 30.1 I .2001), resources amounting to Rs.1537.60 corres (including Govt.‘s supportthrough equity) have been mobilised againstthe MoU target of Rs. 4350 corres. Thedetails of resources mobilised during 2000-01and 2001-02 are as follows:-

(Rs. in crores) 1

S.No. Sources of Funds 2000-01 2001-02* I

I Equity Support from Govt.1. MoUD (Housing)2. MoUD (Urban Dev)3. Min. of Rural Development

I I Bonds & BorrowingsI, Banks/Institutions2. Public Sector Bonds3. Public Deposits

III International Borrowings

IV Grants

TOTAL

155.00 47.0025.00 25.00

100.00

3577.50 432.47899.39 787.51201.33 232.01308.53

24.26 13.425291.01 1537.41

*Fund released during the period 1.4.2001-30.11.2001

8.14. Government Support through Equity:- crores had already been subscribed by theHUDCO was established with an equity base Government towards equity as on 31.03.2001 of Rs. 2 corres in 1970-71. Over the years, the out of which Rs. 782 crores equity has beenHUDCO’s equity base has been expanded by subscribed in the last 3 years only (1998-99the Government and the present authorised capi- to 2000-01) as compared to Rs. 396 correstal base of HUDCO is Rs. 1250 corres, which equity in the last 28 years (upto 3 1 st Marchi;s under consideration with the Government of 1998). During the current year, Rs. 230India for increase to Rs. 2500 crores. Against corres has been allocated by the Governmentthe above-mentioned authorised capital, Rs. 1 I78 towards HUDCO’s equity, out of which

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Rs. 72 crores has been received upto30.11.2001.

8.15. Community Development

A, HUDCO has a mandate of providing55% of its annual housing budget tothe EWS & LIG category clientele.As a government institutionHUDCO’s objective is to effectivelyreach out to the poor and evolve af-fordable dwellings. Since most ofthe poor are from the unorganised/informal sector, HUDCO opened aspecial channel for extending loansto the rural and urban poor throughNGOs. Under this scheme, HUDCOhas been providing loan assistance forhouse construction/up-gradation toeconomically weaker sections (EWS)and low-income groups (LIG)categories, both from the urban andrural areas. The implementation ofsuch schemes is through NGOs witha proven track record of havingworked successfully with thedevelopment needs of the informalsector/unorganised sector clienteleparticularly those specializing in themicro credit activity. During 2000-01,HUDCO continued to extend signifi-cant support to the NGO/CBO initia-tives in housing delivery and sanc-tioned 11 schemes for construction of4235 housing units with a totalHUDCO assistance of Rs. 12.31crores.

In the current financial year (2001-02),HUDCO has sanctioned EWS housingschemes for construction of 54 units at a costof Rs. 22.66 lakhs with a HUDCO loan com-ponent of Rs.11 lakhs in Bangalore byAmbedkar Sewa Sangha & Indira WelfareAssociation. The significant projects proposedto be undertaken during the current year in-clude housing scheme for Beedi Workers atVillage Kumbahari in district Solapur in

Maharashtra. The housing scheme envisagesconstruction of705 units at a cost 0f Rs. 407.14lakhs with HUDCO loan component of Rs.176.24 lakhs.

B. Research projects being coordinated:

1. ADB-TA- Strengthening Micro FinanceInstitutions for Urban Infrastructure Finance:This TA focuses on Integrating MFIs in Ur-ban and Environmental Infrastructure Devel-opment, initiating capacity building pro-grammes for MFIs for Urban InfrastructureFinancing, initiate Pilot Projects by assistingselected MFIs in identifying, selecting, financ-ing, and monitoring sample urban infrastruc-ture projects. This TA is presently under im-plementation.

2. ADB TA on Reducing Poverty in UrbanIndia: The TA aims to assess the impact ofcurrent urban poverty reduction strategies pro-grams at the central and state level. It will helpformulate a national urban poverty reductiondevelopment framework, and will outlinecapacity building and investment areas forconsideration by external agencies, providingfor synergies of different development effortsby the Government, communities, private sec-tor and external assistance agencies. This TAis under consideration.

3. HUDCO-USAID grant-in-aid to GMHST-Implementation of lntegrated Slum Improve-ment Project: The objective is to refine andimplement a new community developmentbased partnership approach in infrastructureinvestment planning. Infrastructure provisionon financial and social sustainability basis. Theproject aims to establish adequate Social, Fi-nancial, Physical and Information Infrastruc-ture. The project is under implementation.

8.16. Training, Research & Consultancy-H u m a n S e t t l e m e n t s M a n a g e m e n tInstitute

The Human Settlement Management Institute(HSMI) was founded in 1985 by the Housing

103

and Urban Development Corporation Ltd.(HUDCO) to promote applied research andprovide training support for professionals in-volved in the planning and development ofhuman settlements. HSMI is also a Researchand Training Wing of HUDCO and itsactivities are supported by a core group ofqualified and experienced professionals fromvarious disciplines.

At HSMI, the emphasis is on participatorylearning and sharing of experience, which is

amply reflected in the output generated in thecourse of its training and researchprogrammes.

. In-house research

l Contract research under the IHSPResearch Cycle;

l HUDCO supported DocumentationStudies; and

. HUDCO supported policy and marketresearch

The in-house research programe is carried outin areas relevant to the policy base ofHUDCO’s operations and to serve as educa-tional material for HSMI/IHSP workshops.

8.17.Training

The information in respect of training programsconducted/planned is given below:-

. Provisional Figures includingtrainingprograms conducted outside Delhi andat Decentralised Training Centersunder HUDCO Chair.

8.18. Research and Consultancy

Under research, consultancy and documenta-

tion efforts, HUDCO (through HSMI) is han-

dling the following major projects:-

. Preparation ofnational Report for Is-

tanbul+5 on behalfofthe Ministry of

Urban Development & P.A.

. Study on Urban Indicators Program

as signed to HSMI by Ministry of

Urban Development & P.A., Govern-

ment of India, to develop city level

indicators for identified cities under the

categories of shelter, social develop-

ment and eradication of poverty, en-

vironmental management, economic

development and governance.

. Research study on Evaluation of So-

cial Housing Schemes was under-

taken by the Intstitute. The study was

sponsored by the Ministry of Urban

Development & P.A., Government of

India.

. An MoU has been signed between

HUDCO and Technology Information

Forecasting and Assessment Council

(TIFAC) for the implementation of

projectentitled the Mission for Appli-

cation of Technology to Urban Re-

newal and Engineering (MATURE).

The prime objective of the Mission is

to employ community based interven-

tions as a means of catalyzing the

urban renewal in selected locations.

The identification of the town under

the Mission is underway. This project

is the result of a new initiative by the

Department of Science and Technol-

ogy, Government of India, with the fi-

nancial assistance from UNDP.

104

. Study on assessment of Training Sup-

ply & Demand with reference to costeffective environment and energy

friendly building technologies. Thisstudy is sponsored by Swiss Center

for Development Cooperation in

Technology and Management(SKAT) with funds from the Swiss

Development Cooperation.

. DFID funded project on Community

Asset Management in collaboration

with Westminster University, UK,

with the objective of working out asystem for community based public

asset management and to diseminate

cost effective construction technol-

ogy.

8.19. Other Activities

In addition to the above projects being un-dertaken, the Institute brings out a quarterly

professional journal ‘Shelter’, ‘HSMI News’and other research publications. A special issue

of the ‘Shelter’ was brought on World Habitat

Day on the theme of Cities without Slums. TheInstitute also brought out special publications

of “State of India Cities 2001” and “Best Prac-

tices for Good Urban Governance”.

The Institute also lends desired support tothe Ministry in its endeavors in the sector and

wasentrusted withorganising the India Launchof Good Urban Governance Campaign on be-

halfofthe Ministry.

8.20. Publication-Journals and NewsLetters

HUDCO brings out number of publications,

which providedetailed information on various

issues relating to rural & urban housing, urbandevelopment, land development and rehabili-

tation, for the purpose of information sharing&dissemination to its employees, agencies and

the public at large. In addition to the above,

various in-house journals and newsletters arealso published on Hudco’s activities.

The various publications/newsletters broughtout by HUDCO are:-

l Action Plan Manual as per GoI guidelinesof May 1995)

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

Nirman Bharati

HUDCO Build-Tech

Indian Building Centre Movement

HUDCO in figures

Awas Bharati

Urban Infrastructure Financing

Interface

Vikas Bharati

HUDCO Niwas Patrika

HUDCO Corporate Profile

HUDCO Vittiya Vaarata

Jaagriti

HUDCO economist

Shelter

HSMI News

8.21. Future Outlook

HUDCO, since its inception in 1970, hasmade steady and significant strides in the fieldofhousingand urban infrastructure financing,to emerge as the pioneer and the trend setter.Catering to the needs of every section of thepopulation, with a basket of delivery optionsboth in housing and urban infrastructuredevelopment, HUDCO aims to achievesustainable growth in these sectors. Havingemerged as the market leader in its operationalarea, HUDCO aims at consolidating its positionand enhancing the performance by layingemphasis on its core competencies andexploring diversified avenues of servicedelivery.

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The effective span of HUDCO’s omnipres-ent techno-financial umbrella could be gaugedby the fact that on an average, one in every16 houses in the country has invariably availedHUDCO’s assistance. This has earned theinstitution the rare distinction of being in thearray of the largest facilitators of housingacross the globe. In a bid to widen its cover-age, HUDCO has fanned out and spread itswings far and wide, touching the daily lives ofthe people in every alternate town and city inIndia besides thousands ofvillages.

“Shelter for all” has been identified as a pri-ority area in National Agenda for Governance.Despite the die-hard efforts since independ-ence, the nation has been unable to cope upwith the ever-growing need of shelter to everycitizen in India. As per estimates, India’spopulation has crossed the one billion mark on1lth May2000 and by theyear2021, the population will exceed 1.35 billion. These precari-ous situations will not only lead to the short-age of decent shelter but also food grains,water, power, proper infrastructure, etc. Tohouse 1000 million population, lndia needs atleast 200 million houses. According to figuresavailable, at present we have nearly 167 mil-lion houses. Hence, there exists a yawning gapto be bridged.

HUDCO emerges as the only organisationof it’s kind to deal with the growing demand ofshelter and infrastructure development in thehuman settlements and make available it’stechno-financial assistance to benefit the vastmultitude of the city & village population.HUDCO is now geared to support nearly 1.5million houses per year both in urban and ruralareas. HUDCO as the market leader in thehousing and city infrastructure sector, willcontinue to build foundations for a strongerIndian by developing sustainable shelter andservices for human settlements in harmonywith nature.

8.22 Major Government Programs (to beimplemented through HUDCO):-

(i)

(ii)

Valmiki ,Ambedkar Awas Yojana(VAMBAY)-VAMBAY is a newCentrally sponsored scheme shared ona 50:50 basis with States which en-visages an annual subsidy of Rs. 1000crores from the Ministry of UrbanDevelopment & Poverty Alleviationto be matched by an equal amount oflong term loan from HUDCO to beavailed against usual State Govern-ment guarantee. The programme wasannounced by the Hon’ble Prime Min-ister in this year’s Independence Dayspeech. The State Government hasbeen given the option to obtain re-sources from any other source (i.e.other than HUDCO) e.g. budgetarysupport, own resources of local bod-ies, loans from other agencies, etc. ASanctioning Committee in the Depart-ment of Urban Employment & Pov-erty Alleviation will scrutinize andsanction the projects received fromeach State Government; the subsidy,however, will be released onlyafter the State Government/Localbody has contributed its own share of50%. Both the subsidy and the loan(when required) will be released byHUDCO.

Nirmal Bharat Abhiyan-The Ministryof Urban Development & PoeveryAlleviation has taken a major initia-tive to provide 100% sanitation in allsix mega-cities, 29 metro-cities andother capital cities of States/UTs. Thiswill have significant thrust towardsproviding sanitation in all slum areaswhich would be maintained by thecommunity with appropriate ‘pay &use charges’ from the families. Thescheme provides for a grant compo-nent of 50% of Government of India

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and 50% loan assistance fromHUDCO. It is proposed to completethe project for 100% coverage forsanitation for all in a phased mannerduringthe 10th plan period. In the I styear, it is proposed to take up I !akhsanitation units and the additional unitswould be taken up in subsequentyears.

8.23. Hindustan Prefab Limited

Hindustan Prefab Limited is a Governmentof India Enterprise functioning under theadministrative control of Ministry of UrbanAffairs & Employment since 1955. After crea-tion of new Ministry of Urban Employment &Poverty Alleviation, this PSU has come underthe administrative control of this Ministry TheCompany has its registered office and Fac-tory at Jangpura, New Delhi- 1100 14.

8.24. Operational Areas

a) Construction works at various sites allover India.

b) The following items are manufacturedat Jangpura factory:-

i) Prestressed Cement concreteRly. Sleepers.

ii) Rly. B r i d g e s l a b s / b a l l a s tretainers.

iii) Prestressed cement concreteelectric poles. Light weightautoclaved cellular concreteblocks for insulation and partitionwalls etc.

8.25. Construction Works all over India

At present,.the company is executing thefollowing major construction works:

(Rs. in lakh)

i) Construction of Building for Employ-ees Provident Fund Organisation at:

a) Janakpuri, New Delhi 624.00

b) Faridabad, Haryana 400.00

ii) Construction of staff quatiers for RBIat SALBONI; Distt. Midnaporc inWest Bengal 2349.00

iii) Construction of staff quarters for SB1at Durgapur, West Bengal641.75

iv) Construction of Office Building forGujrat Mineral Development Corpo-ration at Uhuj & Ahmedabad, Gujarat861 .00

v) Prefab Bridges for Northern Rly inDelhi-Ambala Sector 348.00

vi) Construction of Regional OfficeBuilding at Wazirpur: Delhi for EPF.

8.26. Capital:

The Company’s authorized capital is Rs.10.00 crore and the paid up capital is Rs. 6.97crores.

The loan liability to the Government isRs. 11.13 crore excluding interest of Rs. 31 .05crore thereon as on 31.12.2001.

8.27. Performance:

During the year, the company has achievedproduction and turnover of Rs. 13.87 crore andRs. 10.00 crore respectively uppto 31.12.2001.

Achievement during 1999-2000

(Rs. in crore)

TurnoverActual Actual

1999-2000 2000-2001

a) Factory turnover 8.15 4.90b) Construction 7.51 5.74

Total 16.32 10.64

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8.28. Order Book Position equity in HPL to the extent of 74% of Gov-As on 1st December 2001 order worth Rs. ernment share holding. The matter has since

23.00 cr. were in hand. becn considered in this Ministry and it has been

8.29. The Disinvestment commission has decided to recommend the case for disinvest-recommended disinvestment of Government ment to the comp etent authority.

MGlP(PLU)MRND-5587-UD-14.3.2002. 1 0 8