M Ravi Kanth, chairman of HUDCO, shares how the organisation is fuelling dreams of millions of people who are looking for new avenues
In your previous works, you have worked a lot for uplift of poor, bridging gap between rural and urban infrastructure. In your new stint, how do you plan to give home to one and allIJ
HUDCO is owned by the Indian government and in terms of support for housing and infrastructure, it is the largest company in the country. It is my firm view that HUDCO would continue to intensify its role as the largest facilitator of housing delivery, with particular reference to the weaker sections of the society. Towards improving access to housing for all sections of the society, especially at its lower rungs, HUDCO has introduced two innovative products, namely, ‘Rent-to-Own’ Scheme, which is a ‘rental-cum-ownership’ scheme for low-income employees of an organisation; and HUDCO Nav Nagar Yojana (HuNNY), which offers a comprehensive solution to the growing cities/towns from ‘Planning to Financing’ sustainable habitats.
In the light of the significant deficit in housing in the country and the need for massive efforts to achieve the objective of affordable housing for all by 2022, HUDCO is fully geared up to take up the challenge of providing housing finance, especially for the EWS and lIG segments. HUDCO’s Corporate Plan-2020 envisages a major focus and thrust on social housing in order to achieve the national goal of affordable housing for all. It anticipates an increase in the social housing operations to a significantly higher level, so as to retain HUDCO’s premier role as the only CPSE of its kind financing EWS and lIG at the most competitive rates. HUDCO’s recent innovative initiatives and expansion of its activities in addition to its conventional techno-financing business would give a big push to the housing sector..
How will ‘Rent-to-Own’ scheme help government employeesIJ Does it include both central and state employeesIJ
HUDCO has introduced a new scheme called, ‘Rent-to-Own’ scheme, which is a ‘rental-cum-ownership’ scheme, designed to facilitate an agency to initially avail loan from HUDCO on behalf of its identified employees for the scheme and would allot the houses to its employees initially on rental basis. The employee would become the ‘owner’ of the house as and when the full cost of the house is paid to the Agency. This scheme would benefit the employees at Bottom of Pyramid (BoP) of the agencies, and open to all Central & State Government organisations, Police Housing Corporation employees, autonomous bodies, state PSUs et al.
Any plans to encourage innovative projects in housing and urban developmentIJ
last year, we have introduced a new innovative scheme for urban extensions and integrated townships, which is called ‘HuNNY’ (Hudco Nav Nagar Yojana). This scheme offers a comprehensive solution to the growing cities/towns from ‘Planning to Financing’ the sustainable habitats. Under the scheme, we would provide technical and financial support for developing potential sites as planned urban extensions to meet the requirements of the ever growing population. As the government has a mission to build 100 smart cities, it is expected that HUDCO’s new scheme would provide the necessary ‘planning to financing’ option for existing cities as well as green field cities to build sustainable new urban habitats.
In line with our mission to provide sustainable and inclusive living environment, we are in the process of devising a new product this year for senior citizens in the name of ‘Senior Citizen Housing’ to address senior citizens’ housing needs, in order to provide dignified, safe, socially-enriching living environment, safeguarding the rights of senior citizens in their sunset years. This will be implemented in all the cities and the UlBs/State agencies have freedom to approach us and avail financing under the scheme.
Please elaborate on the recent MoUs signed.
As a step towards further promoting the housing and habitat sector, HUDCO has entered into memorandum of Understanding (MoU) with several organisations such as National Culture Fund (NCF) for conservation of heritage sites/buildings; Construction Industries Development Council (CIDC) for creation of skills required in the building construction industry; National Commission for Women (NCW) under CSR for improving the living conditions of widows at Vrindavan, Mathura; National Building Construction Corporation (NBCC) for joint development of projects; and School of Planning & Architecture for research related activities in the habitat sector, Central Government Employees Welfare Housing Organisation (CGEWHO) for members to avail individual loans from HUDCO Niwas branches all over the country, India Infrastructure Finance Company limited (IIFCl) for investment in Infrastructure Debt Fund created for extending loan to the infrastructure projects in the country and, Credit Risk Guarantee Fund Trust for low Income Housing (CRGFTlIH) for providing effective guarantee for such housing loans upto `5 lakh extended to EWS/lIG borrowers in urban areas without collaterals and/or third party guarantees.
What standards do you maintain at your Human Settlement Management InstituteIJ
Human Settlement Management Institute (HSMI), was set up in 1985 to infuse further professionalism through training and capacity building of its borrowing agencies in project planning and implementation. As per recent MoU signed between HUDCO and Ministry HUPA, Govt of India; HSMI has been entrusted with the responsibility of four activities; to be undertaken during 2014-15:
In order to explore the research studies, HSMI has sanctioned 29 research studies from the year 2012-13 onwards in the research areas as envisaged under MoU targets of R&D template. These research studies have been sanctioned to the prestigious institutions like IITs and IIMs, which have to be completed in a maximum period of two to three years, depending upon the approved scope of work. Out of 29 research studies, two study research reports on Municipal Infrastructure Potential for HUDCO lending conducted by IIPA and study on ‘Primary Collection of Solid Waste Management’ in Bangalore conducted by IIM, Bangalore have been submitted to Ministry of Housing & Urban Poverty Alleviation.
What are the various measures or steps taken in order to aware the local population about the various prevailing schemesIJ
We have the mandate to reach the unreached segment of the society by providing long-term finance for housing and urban infrastructure projects to benefit this segment in the country. In fact, every 16th house in the country is financed by HUDCO. With a pan-India presence, we have emerged as a major player in the arena of housing and urban infrastructure finance over the last four decades offering a wide range of financing options and services. For housing, HUDCO finances and supports a broad spectrum of housing activities such as urban, rural and staff rental housing, land acquisition schemes undertaken by the State’s public organisations and housing projects under JNNURM for meeting the State/UlB contribution (Viability Gap Funding) as well as Retail Financing to individuals, through HUDCO Niwas.
How does ‘Micro Finance for Housing’ scheme benefit womenIJ
To promote micro-finance in housing, HUDCO is participating in the form of equity contribution to Sewa Grih Rinn limited to the tune of `1.8 crore, which is new Micro Housing Finance Company set up by Self Employed Women’s Association (SEWA). HUDCO would ensure financial inclusion of the women members of SEWA, who have so far been denied the benefit of home loans through the formal lending mechanism.
How is bamboo-based building system beneficialIJ
Bamboo offers one of the best alternatives for a totally ‘green’, environment friendly building system option. Referred to as ‘natural iron’, bamboo has natural tensile properties which make it an excellent replacement for energy intensive steel, as well as hardwood. Bamboo as a material has a wide range of applications from food to craft and is widely used worldwide in construction. In India too, bamboo is traditionally used in the bamboo growing states which cover over 70 per cent of the country.
What are the projects HUDCO taken up recentlyIJ
HUDCO infrastructure initiative also includes industrial infrastructure financing and we have financed various industrial infrastructure projects in the country.