Hudco allots Rs 1,200 crore for housing, infrastructure

The Housing and Urban Development Corporation Ltd (Hudco) plans to disburse Rs 1,200 crore for infrastructure and housing projects in the state in fiscal 2004-05.

Hudco had sanctioned Rs 700 crore for Gujarat in fiscal 2003-04 compared with Rs 14,000 crore for the entire country.

"This year, we have allocated around Rs 1,200 crore for Gujarat compared with Rs 16,000 crore at the national level. The Gujarat's share constitutes around 7.38 per cent of the national allocation. The amount has been increased by Rs 500 crore from last year,"" Yogesh Patel, regional chief of Hudco said on Wednesday.

Of the Rs 1,200 crore, Hudco has allocated Rs 332 crore for the housing sector, Rs 472 crore for development of commercial projects under the urban infrastructure development plan and Rs 376 crore for priority urban infrastructure development projects.

However, this allocation for various sectors can be revised mid-term depending on the urgencies for the corporate sector, Patel said.

Since its inception in 1970, Hudco has sanctioned funds worth Rs 4,000 crore of the Rs 9,900 crore estimated cumulative project costs for 1,156 projects in Gujarat.

For the entire country, it sanctioned Rs 63,000 crore of the Rs 1,12,000 crore estimated cumulative cost of 15,271 projects. The non-performing assets (NPAs) of Hudco in Gujarat are estimated to be below seven per cent compared with overall NPAs which is around five per cent.

"We are planning to further reduce the NPAs with the help of the Debt Recovery Tribunal. We expect pending cases to be resolved soon," Patel said.

Interest rates of Hudco vary depending upon the nature of the projects.

Under the action plan scheme, Hudco charges an interest of 7.5 per cent for loans above Rs 50 crore and 8 per cent for loans below Rs 50 crore. For the government sector, Hudco charges 7.75 per cent for loans above Rs 50 crore and 8.25 per cent for loans below Rs 50 crore.

However, interest for the private sector is 9.25 per cent for loans above Rs 50 crore and 9.75 per cent for loans below Rs 50 crore.

Hudco's retail housing finance scheme for individuals has not worked out well.

After its launch in 1999, Hudco has received only 800 applications and has sanctioned a total loan amount of Rs 11.5 crore till date.

"In the retail segment, we are facing stiff competition as there are many of players. We are trying to focus on the retail segment and expect to increase our market share," Patel said.

Pharmaceutical major, Ahmedabad-based Torrent Group, has also reportedly initiated talks with Hudco for Rs 400 crore for its upcoming power project worth Rs 3,200 crore in Surat.

The Sardar Sarovar Narmada Nigam is also in talks with Hudco for Rs 1,000 crore for development of canals.