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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