HUDCO : Finance Projects in 100 Towns in Next One Year..!


India's major financing company, Housing and Urban Development Corporation (HUDCO), may finance projects through about 100 urban local bodies in the next one year on a model that has striking similarities with government's flagship urban programme JNNURM.

Though the exact funding patterns will differ from states to states, the state governments in most cases may pay a grant to an urban body availing HUDCO loans in addition to guaranteeing that the urban local body returns the loan. The loan could be as low as Rs. 1 or Rs. 2 crore and could go up to several thousand crores.

Mr. V. P. Baligar, Chairman, HUDCO said, The programme would empower local administrations in towns & cities. The finances will be extended on a first-cum-first basis. Urban bodies in Madhya Pradesh and Punjab have already come forward to avail of the scheme. We expect to cover about  35 towns during the current fiscal (2012-13), and nearly  100 in next one year."

In Madhya Pradesh, where towns liks Hoshangabad, Ujjain & Bangawan have qualified to avail of loans for its drinking water & drainage projects, the state government has made a commitment to pay 25 % of the project cost as grants. Out of the remaining, which is a HUDCO loan, a part will be returned by the local body.

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