1. STRATEGY FOR BUSINESS DEVELOPMENT
with
Emphasis on Social Housing
and
Focus on Fulfilling the Housing Demand of the EWS & LIG

2. HUDCO Mission 5 Ones ACHIEVABLE THREE ONES OF HUDCO MISSION FIVE ONES
1 Lacs Crores Cumulative Releases.
1 Million Houses per Annum
1 Thousand Crores Profit After Tax
HUDCO
Mission 5
Ones
1 Hundred Urban Local Bodies per annum
1 Percent Gross NPA

3. Funding for Social Housing
The Normal Course of Creating EWS Housing is:
HUDCO
State Housing Boards
Slum Clearance Boards
GoI Action plan Schemes
Social Housing (EWS & LIG)
Funds
&
Grants
The ADW Scheme-a Case Study in Puducherry……
Survey findings: Total housing demand was projected as 12,000 Dus with 3 to 5 % annual incremental demand. Only 50 Dus are added to the housing stock in the existing scheme. The govt. will have to construct Dus per year to cover demand within 5 years.
HUDCO’s Option : Avail Rs.89 Cr. Loan from HUDCO for 15 years repayment period and 51 Cr. From JNNURM Grant to construct DU’s. Technical Consultancy was offered.
Since Dept. has no revenue sources - Repayment was suggested with annual SCP fund allocated for Housing – Loan secured by Govt. Guarantee with Budgetary Support.
HUDCO
Govt. of Puducherry /
Adi Dravida Welfare Dept.
3000 Du’s for EWS /SC Beneficiaries
Funds
&
Grants
Chennai Consultancy has received Rs.6.37 Crores as Fee based income from the projects

4. Funding for Social Housing
Need for Innovation…
Lack of adequate financial resources for implementation of large scale projects which can address the annual housing requirement in the EWS sector.
High interest burden for the State Govt.
No known sources of revenue to undertake repayment of large scale loans.
Tedious approval process – within the Sate Govt. Depts. & respective GoI Ministries
Lack of technical expertise for planning, design and implementation of projects.
Non - availability of attractive financial sops like Grants, subsidized interest etc.
Narrow planning vision – focus only on the financial viability and not on Economic and Social Viability.
Findings based on our experience - bottlenecks faced by the State Govt.’s in addressing the EWS housing requirement
By streamlining its financial and consultancy assistance with the existing Special Component Plan /Tribal Sub Plan (SCP/TSP) scheme offered by the Ministry of Social Justice and Empowerment and this combination alongwith special benefits and easy approval process could serve as the impetus for the State Govt’s to take up EWS Housing.
HUDCO could achieve 3 of the 5 Mission ones…the concept and process are explained in the following slides!
HUDCO could provide the appropriate solution

5. Funding for Social Housing Through the Special Component Plan Fund…
To channelize the flow of outlays and benefits from all the sectors of development in the Annual Plans of States/UTs and Central Ministries in proportion to their population.
The strategy of SCP is aimed at:
(a) Economic development through beneficiary oriented programmes;
(b) Basti oriented schemes for infrastructure development through provision of drinking water supply, link roads, house-sites, housing etc.
(c) Educational and Social development activities
Special Component Plan
(SCSP&TSP)
Monitored by the Ministry of Social Justice and Empowerment
Currently all states mostly use SCP/TSP funds for purchase and free distribution of clothing, food items or other consumable products.
SCP/TSP funds are not adequate to cater to housing requirements and funding options are also unexplored as these projects are considered as non-remunerative and financially unviable projects.
Ever growing demand of housing among the EWS sector necessarily forces the State Govt. to look out for solutions which would be beneficial to the society with lesser financial burden to the State Govt.
Current scenario faced by State Govt.’s in utilizing the SCP fund allocation

6. Towards Achieving 3 of 5 Ones…… With Thrust on Social Housing
A solution based on the Case Study, channelizing SCP Funds……………..
Financial & Technical Assistance by HUDCO
Assisted by concerned Ministries with Adequate Fund allocation for providing 50% grant & Equity enhancement to provide 50% loan with subsidized interest
Technical Consultancy for preparation of DPR’s
High Volume
Repayment Option for State Governments
Utilizing the Housing allocation within the SCP/TSP through State Social / Tribal Welfare Department
Loan backed by Govt. guarantee and State Budgetary support.
Low Risk
End Result – EWS Housing
Achieving SCP strategy of Basti oriented development of the EWS sector
Achieving 1-Million Housing In Social Housing.
Asset Creation to nation
Achieving motive of “Profitability with Social Justice”
Low Margin

7. Towards Achieving 3 of 5 Ones…… With Thrust on Social Housing
Roles and Responsibilities of the MoSJ&E, MoHUPA and HUDCO……………..
“The SCP Sub Plan Bill – 2013” should enforce “Housing” as a mandatory subject of SCP expenditure.
Proportionate % of SCP funds to be allocated for Housing.
Adequate Budget allocation to be given to HUDCO (thro’ MoHUPA) Rs.1000 Cr. as Annual Equity* for 5 years without dividend option.
Set Financial Model of Project - HUDCO to provide 50% of project cost as Grant and balance 50% Gap Funding to be sanctioned as subsidized loan to State Govt.
Identify HUDCO as technical consultant for projects.
Ministry of Social Justice & Empowerment
Announce project as one of the Flagship Housing Scheme for SC/ST beneficiaries .
Sign MoU with HUDCO as National Nodal agency for financing of project and for providing Technical consultancy.
Increase HUDCO Equity base.
Govt. of India may announce “EWS-Housing” as a major thrust area in Union Budget – Engine of economic growth for GDP growth rate.
Issue Guidelines for implementation to all State Govts.
Create National level monitoring cell
Ministry has to give permission to HUDCO for using Financial & Money Multiplier tools to increase funding option
Ministry of HUPA
Set prime target to all RO’s – to undertake preliminary survey and total demand assessment- create awareness to State Govt.
work out the Fund requirement for providing 50% grant and Equity requirement to provide 50% loan with subsidized interest
Popularize the scheme as an attractive free housing scheme for SC/ST people and promote as one of the asset creating welfare schemes for Govt.
Has to avail non-refundable interest free advance from Ministires for 50% grant provision.
HUDCO
*The Government has recently permitted Navratna and Miniratna CPSEs to avail budgetary support from the Government of India for implementation of Government sponsored projects of national importance.

8. Towards Achieving 3 of 5 Ones…… With Thrust on Social Housing
The Top Down Approach within HUDCO……. HO
HUDCO Head Office has to formulate the scheme & set targets to all RO. Conducting Training, Workshop & popularize the scheme to all State Govt.
Work out viable model involving financial, economical & social aspect. Fix the requirement of funds from concerned ministries.
Find out the right Financial & Money Multiplier tools to enhance the non-refundable advance to our required level of fund for the projects. RO
To conduct State level survey to asses the demand & supply of the SC/ST housing needs
Evaluate the existing scheme of the State Govt. housing program and find the ways of adapting the same in the proposed scheme.
To conduct detailed analysis of the State Govt. requirements & evaluate benefits in political, financial & policy aspects.
Mission Team
RO has to form the Mission (MT) Team for this scheme & MT has to formulate implementation strategy for the program and initiate steps to spread awareness of the scheme among stakeholders and concerned Dept. officials and convince them about the effectiveness of the scheme.
MT has to create awareness to the State Govt. to award the consultancy work to HUDCO for preparation of DPR’s for the scheme. It will increase our fee based income

9. Towards Achieving 3 of 5 Ones…… With Thrust on Social Housing
Achieving of Targets for main stakeholders……………..
Ministry of Social Justice & Empowerment (MoSJ&E)
Achieve SCP/TSP Targets effectively
Ministry of Housing & Urban Poverty Alleviation (MoHUPA)
Achieve prime Target of EWS Housing Demand
Housing & Urban Development Corporation (HUDCO)
Achieve One Million Housing
Increase our fee based income
Enhancement of Equity contribution.
State Governments
● Address the EWS Housing requirements & Enhance Quality of Life of deprived sections.

10. Towards achieving 3 of 5 Ones……..
Advantages of the scheme to HUDCO…….
Increase in Equity Base & higher Equity Contribution from Ministries. reduce cost of borrowing significantly, will boost and expand operations with multiplier effects.
New avenue for Consultancy Assignments for increasing our fee based income to all RO’s & restructuring of existing man power position & strength.
Business Oriented Objective
It is easy to achieve 3 of 5 Ones: 1.One Million Housing target under priority sector of EWS housing, 2.One Thousand Crores PAT and 3.One Lac Crores Release
The housing assets will create additional requirement of social infrastructure facility like water supply, Roads, drainage etc., will boost our core operations –HUDCO act as “One Stop Destination”.
Target Oriented Objectives
Achieve the Organizational Objective of “Profitability with Social Justice”, and provision of EWS housing/asset creation will contribute to a rise in India’s status in the Human Development Index.
HUDCO will be an Engine of Economic Growth and help to achieve desirable GDP growth rate for India.
Social Responsible Objectives

11. THANK YOU