6.1 Housing & Urban Development Corporation Limited (HUDCO)mohua.gov.in/upload/uploadfiles/files/7(7).pdf · 2017-08-04 · 6.1 Housing & Urban Development Corporation Limited (HUDCO)

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CHAPTER – VI

PUBLIC SECTOR UNDERTAKINGS

6.1 Housing & Urban Development Corporation Limited (HUDCO)

6.1.1 Housing & Urban Development Corporation Ltd. (HUDCO)

was incorporated as a fully owned Government Company

under the Companies Act, 1956 with the main objectives to:

i) provide long term finance for construction of houses for

residential purpose in urban and rural areas and finance or

undertake housing and urban development programme in the

country;

ii) finance or undertake, wholly or partly, the setting up of new

or satellite towns;

iii) subscribe to the debentures and bonds to be issued by the

State Housing (and/or) Urban Development Bonds,

Improvement Trusts, Development Authorities, etc. specially

for the purpose of financing housing and urban development

programmes;

iv) finance or undertake the setting up of industrial enterprises

of building material;

v) administer the monies received, from time to time, from the

Government of India and other sources as grants or

otherwise for the purpose of financing or undertaking

housing and urban development programmes in the country,

and,

vi) promote, establish, assist, collaborate and provide

consultancy services for the projects of designing and

planning of works relating to housing and urban

development programmes in India and abroad;

6.1.2 In order to achieve these objectives, HUDCO finances a

variety of housing and urban development projects

formulated by the State Governments, Parastatal Institutions,

State Housing Boards, Development Authorities,

Improvement Trusts, Co-operative Housing Societies,

private sector, joint sector etc. Over the years, HUDCO has

emerged as the leading public financial institution with the

major objective of financing and encouraging housing and

urban development activity in the country and has developed

sound capabilities of project preparation, appraisal, financial

planning and monitoring.

6.1.3 Mission

To promote sustainable habitat development to enhance the

quality of life.

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6.1.4 Vision

6.4.1.1 To be among the world’s leading knowledge hubs and

financial facilitating organizations for habitat development

I. HUDCO performance during the year 2010-11(As on

31.12.2010)

HUDCO, during the year 2010-11 (till 31.12.2010)

sanctioned loans of `7841 crore out of which `5527 crore

was for urban infrastructure and `2314 crore was for

housing. HUDCO, during the period, released an amount of

`3132 crore out of which `2739 crore was for urban

infrastructure and `393 crore was for housing. During this

period, the loan sanctioned by HUDCO will help in

providing 31546 dwelling units (including 451 under

HUDCO Niwas), and 31 urban infrastructure projects.

II. Performance vis-à-vis Targets

The performance in any year is aimed at achieving /

surpassing the targets as laid down in the Memorandum of

Understanding signed between HUDCO and the Ministry of

Urban Employment & Poverty Alleviation. The targets laid

down in the MoU form the basis of the overall operations

that the organization undertakes during the year. The targets

and achievements for 2010-11 (As on 31.12.2010) are

indicated below:-

(`̀̀̀ in Crore)

S.

No.

Criteria Target

(2010-2011)

Level 1

Achievement

(2008-2009)

As on 31.12.10

1. Loan Sanctions

(a) Housing

(b) Urban Inf.

5457

12734

2314

5527

2. Loan Release

(a) Housing

(b) Urban Inf.

1910

4457

393(Prov.)

2739

6.1.5 Physical Progress

I. Dwellings Sanctioned During the Year 2010-11 (As on

31.12.2010)

The table below indicates the category-wise break-up of

dwelling units sanctioned by HUDCO during the year 2010-11.

CATEGORY NO. OF UNITS

-ECONOMICALLY WEAKER SECTION 9424

- LOWER INCOME GROUP 8063

- MIDDLE INCOME GROUP 8709

- HIGHER INCOME GROUP 4899

TOTAL 31095

- HUDCO NIWAS 451

GRAND TOTAL 31546

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II. Cumulative Sanction of Dwellings (upto 31.12.2010)

HUDCO’s loan sanctions upto 31.12.2010 will help provide

loan assistance for 14528816 residential units, 42043 non-

residential buildings, 535635 plots and 6687469 sanitation

units. Total 91.78% of Dwellings Sanctioned are for EWS &

LIG families.

CATEGORY NO. OF UNITS

-ECONOMICALLY WEAKER SECTION 12006292

- LOWER INCOME GROUP 1329383

- MIDDLE INCOME GROUP 487193

- HIGHER INCOME GROUP 322570

TOTAL 14145438

- HUDCO NIWAS 383378

GRAND TOTAL 14528816

The summarization of the performance for the current year

has been made on the basis of the activities / projects

undertaken in the various areas such as Housing, Rural

Housing, Retail Housing (Hudco Niwas), Urban

Infrastructure, Training & Research & Consultancy, Design

& Development, Community Development, Human

Resource Development, Resource Mobilisation etc. which

are given below:-

6.1.6 Housing

HUDCO’s housing operations have a major social

orientation with HUDCO having a clear-cut mandate to

provide financial support for affordable shelter to the EWS /

LIG categories. Cumulatively Over 91.78% of the dwelling

units sanctioned by HUDCO have thus benefited the EWS &

LIG groups. The other significant provisions that help the

poor in gaining access to shelter include:

• Lower interest rates for EWS categories.

• Lower the unit cost, higher is HUDCO’s loan component.

• Longer repayment period for EWS categories.

6.1.7 Cumulative Operations

Cumulatively (upto 31.12.2010), HUDCO has sanctioned a

total loan amount of `108725crore for construction of

`142.74 lakh dwelling units, out of which `132.93 lakh

dwellings have been sanctioned under EWS & LIG

categories includes sanctioned loans of `3955 crore for

383378 units under HUDCO Niwas.

6.1.8 Major Initiatives towards Increased Social Housing

Operations

In line with the expectation of the Ministry, HUDCO has

been making significant efforts towards improving the

contribution for the social housing sector. Towards making

the interest rate for social housing more competitive,

HUDCO has taken a major initiative in August 2009, to

reduce the interest rates applicable to the social housing

sector covering Economically Weaker Sections (EWS) and

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Low Income Groups (LIG) to 7% to 7.50% This is effective

from 24th August, 2009. It is highlighted that this rate is

probably the lowest in the market, it is lower than its

borrowing cost, and does not include its

administrative/overhead costs. This rate of interest for social

housing has also been popularized through formal

advertisements in print media, in electronic media in popular

web-sites such as whispersinthecorridors.com and

sarkari.com, and more importantly, by personal meeting by

the Regional Heads with the concerned Housing Secretaries

and the CEOs of the Housing agencies in the States. The

substantial reduction in the interest rates has definitely sent a

positive signal in the field.

6.1.9 Extending Affordable Housing Finance

In addition, towards promoting affordable housing projects,

HUDCO charges 1% to 3% lesser interest rate for affordable

housing projects. Further, under its HUDCO Niwas window

(retail lending), a 0.75% reduction in fixed interest rate for

women beneficiaries is being extended.

6.1.10 Scheme for Land Acquisition and Development of New

Human Settlement

HUDCO’s loan assistance is available for acquisition as well

as development of land. The scheme will help the housing

agencies to orient their activities as “promoters” of houses.

It is envisaged that after land development stage, the public

agencies may act as a catalyst and accelerate total

development of the new human settlements and may

undertake construction of only EWS / LIG housing. The rest

of the developed land could be made available to cooperative

sector, private builders, individuals etc., and some part could

be reserved for shelterless service population where schemes

could be implemented with the association of NGOs and

State Slum Improvement Boards.

6.1.11 HUDCO’S Contribution to Housing Programme to

Housing Programme of Govt. of India Launched during

1998-99

Under the Housing Programme of Govt. of India which was

started during 1998-99, HUDCO had been entrusted with the

work of providing loan assistance for construction of 10

Lacs units annually (6 lacs units in rural areas and 4 lacs

units in urban areas, out of the 13 lacs houses in rural areas

and 7 lacs in urban areas envisaged under the programme).

Against the same, since 1998 to 2010-11 as on (31.12.2010),

HUDCO has supported a total of 108.45 lakh units (gross) in

both rural and urban areas.

6.1.12 Valmiki Ambedkar Awas Yojana (VAMBAY)

VAMBAY and NSDP schemes have been subsumed in the

Integrated Housing Slum Development Programme

(IHSDP), which was launched on 3rd December 2005.

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6.1.12.1 Cumulative Status of VAMBAY Scheme

As on 31.12.2010 (Provisional data), net Govt. of India

subsidy of `93724.782 lakh has been released for

construction/upgradation of 460809 dwelling units (DUs)

and 65682 toilet seats. Out of the above, under Nirmal

Bharat Abhiyan (NBA), net Govt. of India subsidy of

`12266.02 lakh has been released for construction of 65682

toilet seats.

As per progress reports received from agencies, 442283 DUs

are completed & 8770 DUs are under progress and 63819

toilet seats are completed & 1333 toilet seats are under

progress.

6.1.13 Jawaharlal Nehru National Urban Renewal Mission

(JNNURM)

JNNURM was launched by the Govt. of India in December

2005 to encourage creation of financially sustainable

inclusive cities. The objective of the Mission is to give

focused attention to planned development of identified cities

including peri-urban areas, out growths and urban corridors

to foster dispersed urbanization, ensure adequate funds to

meet the deficiencies in urban infrastructural services,

provide basic services to the urban poor including security of

tenure at affordable prices, improved housing, water supply

and sanitation, ensure delivery of other existing universal

services of the Government for education, health and social

security and establishment of linkages between asset-

creation and asset-management.

The Basic Services for Urban Poor (BSUP) and Integrated

Housing and Slum Development Program (IHSDP) under

JNNURM are dealt by the Ministry of Housing and Urban

Poverty Alleviation.

6.1.14 Basic Services to the Urban Poor (BSUP)

I. Background

The programme for Basic Services to the Urban Poor was

launched with a view to ameliorate the conditions of the

urban slum dwellers who are residing in dilapidated

conditions in the 65 identified mission cities.

The basic objective of the scheme is to strive for holistic

slum development with a healthy and enabling urban

environment by providing adequate shelter and basic

infrastructure facilities to the urban slum dwellers. The main

thrust is to ensure improvement in urban governance so that

urban local bodies/parastatal agencies become financially

sound with enhanced credit rating and ability to access

market capital for undertaking new programmes.

To achieve this objective, State Governments, Urban Local

Bodies and para statal agencies will be required to accept

implementation of an agenda of reforms. The project

proposal must meet a defined 7 point charter covering land

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tenure, housing, water supply, sanitation, health, education

and social security.

II. Financing pattern

The Central and State share is in the ratio of 50:50 for the

cities having population more than one million. In case of

other cities (except North Eastern States and Jammu and

Kashmir) the ratio is 80:20 and for North Eastern States and

Jammu and Kashmir the ratio is 90:10.

6.1.15 Integrated Housing and Slum Development Programme

(IHSDP)

I. Background

The Integrated Housing and Slum Development Programme

(IHSDP) was launched with a view to ameliorate the

dilapidated living conditions of the urban slum dwellers

covering all the towns except the 65 identified mission cities

covered under the programme for Basic Services for the

Urban Poor (BSUP).

The existing Valmiki Ambedkar Awas Yojana (VAMBAY)

and the discontinued National Slum Development

Programme (NSDP) are subsumed in the IHSDP, to strive

for holistic slum development with a healthy and enabling

urban environment by providing adequate shelter and basic

infrastructure facilities to the urban slum dwellers. The main

thrust is to ensure improvement in urban governance so that

urban local bodies / para statal agencies become financially

sound with enhanced credit rating and ability to access

market capital for undertaking new programmes. The project

proposal must meet a defined 7 point charter i.e. land tenure,

housing, water supply, sanitation, health, education and

social security.

II. Financing pattern

Under the scheme, the Central and State share is in the ratio

of 80:20 but for special category States (North Eastern States

and Hilly States i.e. HP, J&K, Uttaranchal and Sikkim) the

funding pattern between Centre and States will be in the ratio

of 90:10. The ceiling cost for a dwelling unit is `1,00,000

per unit. For special category / hilly States and difficult / far

flung areas, 12.5% additional cost is permissible over and

above the prescribed ceiling cost per dwelling unit.

6.1.16 HUDCO’S Role in Generation of BSUP / IHSDP Projects

HUDCO in conformity with its emphasis on providing

Housing for Economically Weaker Sections and

disadvantaged populace is playing a very significant role by

reaching the Mission objective to the target beneficiaries.

This role entails Dissemination of Information on JNNURM

through trainings/ workshops in various states; Assisting

State Government / Implementing Agencies in Formulation

of Detailed Project Reports by providing Technical &

Design consultancy in areas like Efficient Housing,

Comprehensive Layout plans addressing the socio-economic

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and livelihood needs of the beneficiaries like provision of

need based Community centres, Livelihood centre,

Occupational Spaces, Animal Pens, informal market spaces,

adequate green open areas, primary health centres, informal

educational centres etc, cost effective infrastructural services

like rain water harvesting, solid waste management etc.

Appraising Projects received from the States in accordance

with the Government of India guidelines and directives for

consideration of sanction by the Ministry. Recently,

HUDCO has been nominated as “Monitoring Agency”, for

monitoring implementation of BSUP & IHSDP schemes.

6.1.17 Achievements of HUDCO

(A) Cumulative status:

As on 31.12.2010, (updated till 14.12.2010 based on minutes

of CSMC/CSC meetings received from the Ministry) 300

projects under BSUP with a Project Cost of `17758.63crore

covering 6.25 lakh dwelling units and 907 projects under

IHSDP with a Project Cost of `9060.28 crore covering 4.86

lakh dwelling units have been appraised by HUDCO and

sanctioned by the Ministry.

(B) INITIATIVES IN RURAL HOUSING (As on 31.12.2010)

HUDCO started its rural housing activity from 1977-78 by

extending loan assistance on affordable terms for

construction of rural houses. Over the past 30 years,

HUDCO through its rural housing operations has been able

to contribute to the construction of around 86.53 lakh rural

houses with loan assistance of `6081.12 crore in various

states of the country.

(C) Retail Housing – Hudco Niwas

HUDCO Niwas scheme since its inception in March 1999

has received a good response from individual applicants and

from State Governments / Public Sector Undertakings for

giving housing building advance to their employees due to

its competitive terms, value added services and user friendly

options.

In order to reach out to the beneficiaries directly, HUDCO

launched its Individual Housing Loan Window-HUDCO

NIWAS in March, 1999. The scheme is extremely popular

with its most competitive terms, value added services and

user friendly options among the public at large.

During the current financial year 2010-11, (upto

31.12.2010), a loan assistance of `39.54 crore has been

sanctioned for 451 beneficiaries and `70.79 crore has been

released.

(D) URBAN INFRASTRUCTURE FINANCING

The growth of urban settlements during the past years has

put tremendous pressure on urban services like water supply,

sanitation, drainage, solid waste disposal, transportation etc.

In order to supplement the efforts for urban development

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including improvement of services, the Govt. of India

decided to entrust the task of urban infrastructure financing

to HUDCO, which already had necessary expertise to

appraise such projects as well.

HUDCO has been providing following services in Urban

Infrastructure sector: -

1. Providing long term finance for UI projects such as Water

Supply, Sewerage / Solid Waste Management,

Transportation, Power, Information / Communication,

Commercial, Social Infrastructure, Area Development,

Integrated Low Cost Sanitation and Basic Sanitation

schemes in urban areas of all sizes namely mega cities,

metro cities, small and medium towns and also rural

habitations.

2. Providing consultancy services for formulation of Solid

Waste Management projects.

3. Providing Project Development / Initiation Fund.

4. Involved in Central Govt. sponsored Integrated Low Cost

Sanitation (ILCS) scheme by providing financial assistance

and routing GOI subsidy to various State Govt. agencies.

As a market leader in urban infrastructure financing, HUDCO

continues to extend Urban Infrastructure finance for a variety of

projects.

During the year 2010-11, upto (31.12.2010) a total of 31 Urban

Infrastructure projects were sanctioned with a total project cost of

`53581.79crore and HUDCO loan component of `5527crore and an

amount of `2739 crore has been released. The projects sanctioned

include 1 water supply schemes, 2 sewerage/drainage schemes, 9

transport/roads schemes, 5 Social Infrastructure and 14 Commercial

and other sector.

Programme-wise Performance (Cumulative as on 31.12.2010)

Since inception to 31.12.2010, HUDCO has sanctioned an amount

of `74298 crore for 1571 Urban Infrastructure schemes (excludes

sanitation schemes). The scheme-wise details are as follows: -

(` in Crore)

S. No. Scheme Type No. of schemes Loan Amount

1 Water Supply 411 14024.03

2 Sewerage/Drainage &

Solid Waste Management

105 4488.53

3 Transport/Roads 226 16995.96

4 Area Development 114 3028.52

5 Social Infrastructure 319 4614.52

6 Commercial & Others 396 31146.52

Grand Total 1571 74298.08

Special Initiatives in the North-Eastern Region

HUDCO continued its special thrust towards development of the

North-Eastern States through a special allocation of 10 percent of its

annual allocations for North-Eastern States under its housing

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portfolio. During the financial year 2010-2011 (till 31.12.2010)

HUDCO has sanctioned 2 housing schemes with a project cost of

`17.60 crore and HUDCO loan component of `15.00 crore. This

would help in construction of 104 dwelling units in the State of

Nagaland (excluding HUDCO Niwas).

Beside above HUDCO has also sanctioned 4 Urban Infrastructure

projects with HUDCO loan assistance of `5.65 crore in the state of

Nagland.

(E) Resource Composition

During the year 2009-10, resources amounting to `3339.96 crore

were mobilized. During the year 2010-11, resources amounting to

`1604 crore (upto 31.12.2010) have been mobilized. The details of

resources mobilized during 2009-10 and 2010-11 (upto 31.12.2010)

are as follows:

(`̀̀̀ in crore)

S.

No.

Sources of Funds 2009-10 2010-11 (Upto 31.12.2010)

I Equity Support from Govt.

MOUEPA (Housing)

MOUD (Urban Dev)

Ministry of Rural Development

0.00

0.00

0.00

0.00

0.00

0.00

II Bonds & Borrowings

Banks / Institutions

Public Sector Bonds

Public Deposits

Others

2251.00

0.00

1088.96

0.00

1199

0

405

TOTAL 3339.96 1604

6.1.18 Organistaion Network & Human Resource Development

I. With the emerging new scenario and competitive

environment, HUDCO’s approach has been to increase

professional inputs in shelter and infrastructure projects at all

stages of the project cycle. To achieve this, HUDCO utilizes

professional skills available in house as well as elsewhere in

the country. The total human resource strength of HUDCO

as on 31.12.2010 is 999, out of which 681 are executives

with multi-disciplinary professional backgrounds of finance,

law, architecture, civil, PHE, urban and regional planning,

environmental and transport specialization, community

development, systems, economics, real estate development,

human resource, public relation, documentation etc.

II. From being an organization that operated only from its

Corporate Office in Delhi till 1983, with a view to ensure its

speedy services to all regions, HUDCO has laid emphasis on

decentralization of its activities. HUDCO has spread its

wings to develop a closer and stronger rapport with the

agencies in various States and to identify new ones in

different regions.

III. HUDCO is making profit since its inception and based on

the performance, the HUDCO Board of Directors in its 241st

meeting held on 17.11.1997 had reviewed the various criteria

required for seeking Mini-ratna status to HUDCO based on

the guidelines issued by the Government on the subject

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matter. Accordingly recommendations were forwarded to the

Ministry for conferring Mini-Ratna status to HUDCO.

HUDCO was granted Mini-Ratna status with respect to

Financial and Operational Autonomy during the year 2004.

IV. Besides the operational heads both in the Corporate Office

and the Regions, there are key-positions of Sr. Executive

Directors/ Executive Directors which are specialized posts in

areas like Resources Management, Consultancy, Social

Housing, Core Infrastructure, Real Estate, Power &

Transport, Internal Audit, Law, HRMA, IT, Research &

Training, Property Management and Vigilance.

V. The ever-changing business environment calls for more

responsive and innovative approaches to stay in the

competitive market. HUDCO, accordingly, keeps reorienting

its corporate strategies to achieve the corporate goals with

changing times. With a view to enhance competitive

capabilities of its human resources, 594 employees were

nominated/sponsored for training both in India and abroad

during the year 2010-11 (upto 31st December, 2010). As on

31st December, 2010 the total employee strength was 999

comprising of 681 executives and 318 non executives. The

total number of women employees as on 31st December,

2010 was 279. HUDCO also continued its efforts to promote

gender equality and empowerment of women employees to

ensure their best contribution.

VI. The Corporation continued to follow the Government

policies on reservation for SCs/STs/OBCs. Out of the total

strength, there were 181 SCs, 60 STs, 82 OBCs, 17

physically handicapped and 27 ex-servicemen. HUDCO

continued to maintain good industrial relations with its

employees.

VII. With reference to Ministry of Personnel Public Grievances

and Pension order dated July 2001, HUDCO has adopted

Citizen Charter where details of activities undertaken have

been taken care of. The Citizen Charter has been put on

HUDCO Website for publicity and awareness.

6.1.19 Consultancy and Project Management Initiatives

I. Apart from the techno-economic mandate given to HUDCO,

a distinct thrust has been extended to the fee based

consultancy by utilizing its inherent strength of technical

personnel, long experience and expertise in the fields of

Architecture, Designing and Planning. During the financial

year, HUDCO has been involved in showcasing various

facets of consultancy services, thereby contributing to the

overall image building of HUDCO.

II. With a view to enhancing the fee-based activities of

HUDCO, it has developed proficiency in the area of

preparation of Detailed Project Reports for housing/slum

development as well as infrastructure development in

various cities and towns. During the year 2009-10, HUDCO

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has undertaken the work of preparation of DPRs under

BSUP and IHSDP schemes of JNNURM, for Meerut,

Hastinapur, Malegaon, Bangaluru. Further, appraisal of

project reports for funding/approval by the Government for

projects under JNNURM programme have been undertaken.

HUDCO has also undertaken the assignment of Project

Management Consultancy in Patna.

III. As a gesture of appreciation for the consultancy services

provided for Pilgrimage cum Cultural Centre at Sikkim, the

Govt. of Sikkim had further entrusted additional works to

HUDCO. The Hon’ble Minister for Housing and Urban

Poverty Alleviation had visited Sikkim in The month of

December 2009 and praised the project and lauded the

efforts of D&D Wing for the same. HUDCO is also involved

in the Preparation of a Tourism Plan for Yamuna Nagar,

Panchkula and Paonta Sahib Tourism Circuit. The plan

entails the identification of tourist destination in the above

districts and developing these destinations by providing new

tourist attractions and basic tourist amenities to improve the

visitors experience.

IV. The project for Archaeological Survey of India has been

revived with the efforts of HUDCO and it is being designed

as a demonstration project in heritage conservation and

energy efficiency.

V. In addition, HUDCO is providing Comprehensive

Architectural Services for the development of its own plots

at NOIDA and Regional Office Buildings at Jaipur etc. The

Institutional Complex at Noida, is also being developed as a

prestigious project, at the same time.

VI. HUDCO has prepared Master Plans for major cities in Bihar

and Jharkhand. Further, it has prepared the Urban

Development Strategy for the state of Jharkhand. The City

Development plans for selected cities of Bihar has also been

initiated.

VII. Currently, HUDCO is gearing to provide consultancy

assistance to the states and urban local bodies for slum free

city planning as per the RAY programme launched by the

Ministry.

VIII. Another significant initiative of HUDCO towards

diversification of its sphere of fee based consultancy

activities is the decentralization of its consultancy activities

to the Regional Offices. With this initiative, many of the

Regional Offices such as Chennai, Jaipur, Chandigarh, Patna

and Kohima have started showing good potential for

undertaken consultancy/fee based assignments at the

Regional level. At present, a large number of consultancy

assignments pertaining to Social Housing and Tourism

Development Projects are being undertaken, having a spread

of almost crisscrossing the, Puducherry state and other areas,

by HUDDO’s Chennai Regional Office. Further initiatives in

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terms of exploring projects under Govt. of India scheme

RAY (Rajiv Awas Yojana) are being taken and HUDCO is

likely to get a large number of project under the same

keeping in view the technical expertise and talent pool

available in HUDCO.

6.1.20 Human Settlement Management Institute (HSMI)

I. HSMI is functioning as Research & Training Division of

HUDCO and its activities are supported by a core group of

qualified and experienced professionals from various

disciplines. HSMI has continued its efforts to provide

capacity building to the professional engaged in the Housing

& Urban Development Sectors including HUDCO

borrowing agencies, local bodies, NGOs, private sector

Housing Finance Institutions etc.

II. Recently, HSMI has been re-structured by establishing four

Centers focusing on specialized professional areas as

follows:-

1. Centre for Sustainable Habitat;

2. Centre for Affordable Housing;

3. Centre for Urban Poverty, Slums & Livelihoods;

4. Centre for Project Development & Management

III. Faculty Members are being assigned to each Centre to carry

out the activities which include training, research,

collaboration and extending the required professional

support to various programmes of Government of India.

IV. HSMI is one of the identified Nodal Resource Centre on

behalf of the Ministry of Housing & Urban Poverty

Alleviation, to coordinate various training and

documentation activities under IEC (Information, Education

& Communication) component to support implementation of

the Govt. of India supported poverty alleviation programme

(SJSRY).

V. During the year, HSMI activities covered a series of training

research and related activities, the details of which are

briefly indicated as below:

6.1.20.1 Training

I. During the period 2010-11(till 31.12.2010), HSMI has

organized training programmes for professionals from Urban

Local Government/Local Bodies, Urban Sector

Organisations and HUDCO Officers. Till December 31,

2010, 21 Programmes have been organized and 1195 man-

days have been achieved covering 850 professional

functionaries from different Urban Local Bodies

implementing SJSRY programmes in different States of the

Country. In addition, Capacity Building for Quality

Assurance & TPIM, monitoring and documentation support

for implementation of Government of India supported

JNNURM have also been undertaken. These programmes

have been organized both at HSMI and other locations in the

country.

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II. HSMI also organized 14 In-house Training Programmes

covering 345 HUDCO employees till 31.12.2010 covering

areas like Consultancy Management, Project Appraisal,

Project Management, Legal Issues in Financing of Housing

& Infrastructure Projects, IT Applications, Management and

Behavioral related issues and achieved 2537 man-days.

III. HSMI in association with NAREDCO had organized two

Training Programmes for the Real Estate Professionals till

31.12.2010 in which 54 real estate professionals

participated and the man-days achieved 648.

IV. The details of total Programmes, Participants and man-days

achieved during the financial year 2010-11 (till 31.12.2010 is

as under:

Achievements for the period 1.4.2010 to 31.12.2010:

Description of Targets No. of

Progra

mme

No. of

Partici-

pants

Man-days

achieved

Training to HUDCO

Employees

15 378 2570

Training of ULB Professionals

(under IEC-SJSRY)

21 850 1195

Training of Real Estate

Professionals

2 54 648

Capacity Building for Quality

Assurance & TPIM

6 152 458

Masons & Building Centre

Officials on Innovative Cost

8 229 1054

Effective Building Materials &

Construction Practices

Support to Research Studies on

Housing & Urban

Development Sector

4

IN Progress

Total: 56 1717 5925

Activities listed at Sl. No. 5&6 also from part of MoU

targets for HUDCO during the financial year 2010-11.

6.1.20.2 Networking Activities

HSMI carried out a series of professional networking with

various National and International agencies to exchange

experience and expertise in Urban Development Issues.

These include participation of HSMI in the training

programmes, seminars, workshops etc. Besides extending

documentation and other logistic support, collaboration and

networking activities both at national and international level

are being further reviewed and strengthened with focus on

identified professional areas of the four Centers of

Excellence established recently at HSMI and also to augment

wider networking with National Resource Centers

undertaking activities supported by the MoHUPA

6.1.20.3 Other Activities

i) Professional support to the Ministry of Housing & Urban

Poverty Alleviation, Govt. of India on World Habitat Day

P a g e | 81

Activities in October, 2010. In addition, a Seminar on

“Inclusive Cities” was organized by HSMI on 19.10.2010 as

part of World Habitat Day celebrations of MoHUPA.

ii) Publication of HUDCO Magazine “Shelter”-2 Issues

(Vol.12 No.1&2).

iii) Background Notes and Papers on different issues sought

from time to time have been prepared for Ministry of

Housing & Urban Poverty Alleviation, Govt. of India:

6.1.21 Technology Transfer Initiatives Through Building

Centres

HUDCO continued its efforts in strengthening the Building

Centre Movement towards promoting environment friendly,

ecologically appropriate, energy efficient, functionally

durable, aesthetically pleasing and yet cost effective and

affordable building materials and technologies in the

construction sector. 577 Building Centres were sanctioned

out of which 387 Building Centres are doing good works in

propagating the innovative building materials and

technologies and others are in various stages of

establishment. So far (till 31.12.2010), total grant of

`2216.10 Lakh has been sanctioned for Urban Building

Centre out of which `1679.44 Lakh has been released.

6.1.22 Establishment of Adarsh Gram / Adarsh Basti

HUDCO continued its programme for development of

Model Villages (Adarsh Gram) and Model Improved Slums

(Adarsh Basti) for providing integrated inputs of physical

planning, architectural design, efficient utilization of land

and appropriate technologies ensuring user participation, use

of innovative/renewable sources of energy etc., with a

convergence mode in all the States and Union Territories.

HUDCO’s cumulative sanctions upto 31.12.2010 is of 116

Model Village/Basti with total grant of `3891.83 Lakh.

6.1.23 Future Outlook - Building foundations for a stronger

India

Helping to build houses for the poor and contributing

to a better quality of life

Corporate Plan -2020 has projected the broad directions for

HUDCO in the next 10 years and has defined its business

focus areas. The overall sanction is projected to increase

from `18,900 crore in 2010-11 to `70,900 crore in 2019-

20, and the overall loan releases is projected to increase

from `6,400 crore in 2010-11 to `25,600 crore in 2019-20.

A higher growth is envisaged with more focus on social

housing and core infrastructure, being the traditional

business areas for HUDCO.

The Corporate Plan 2020 has set the goal of realizing a

share of 20-25% of HUDCO’s entire operations for social

housing within its operations, by 2020, which would be

achieved in a gradual manner during this period. During

the 10 year period, almost 90% of the total number of

P a g e | 82

dwelling units to be supported are for social housing and

10% are for other housing. On the basis of the projected

sanctions and releases during the period 2010-20 for

housing and urban infrastructure sector by HUDCO, the

outstanding loan is projected to reach `1,10,885crore at the

end of 2019-20 from the level of `24,673 crore in 2010-11.

HUDCO is now poised to significantly enhance its

contributions to the sector, as envisaged in its Corporate

Vision 2020, which focuses on exponentially increasing its

lending to Social Housing and Core Infrastructure sector

and to expand its consulting and training base in synergy

with major Governmental programmes in the Habitat

Sector, like JNNURM and Rajiv Awas Yojana etc. through

its multi Faceted Human Resources and expertise gained

over 40 years of its existence.

P a g e | 83

6.2 Hindustan Prefab Limited (HPL)

6.2.1 Background

In 1948, the Government of India established “Government

Housing Factory” as a Department under the then Ministry

of Production with the prime objective to carry on all kinds

of business relating to manufacture, fabrication, assembly

export, import and dealing in other construction and

fabrication business. In the year 1950 the name of this

Department was changed to “Hindustan Housing Factory

Limited (HHF Ltd)” and keeping the same objective it was

registered as Hindustan Housing Factory Limited on 27-01-

1953 as a private company. It became a Central Public

Sector Enterprise (CPSE) on 16-08-1955, and its name was

changed from Hindustan Housing Factory Limited to

Hindustan Prefab Limited (HPL) w.e.f. 09-03-1978.

6.2.2 MANAGEMENT

HPL is managed by the following Board of Directors:

• Sh. Jaiveer Srivastavaa, Chairman & Managing Director full time Official Director of HPL took over

charge of CMD w.e.f. 01.08.2006;

• Sh. S.K Singh, IAS, Joint Secretary - Housing,

Ministry of Housing & Urban Poverty Alleviation, Part Time Official Director of HPL;

• Smt. Sudha Krishnan, IA&AS, Joint Secretary &

Financial Advisor, Ministry of Urban Development and

Ministry of Housing & Urban Poverty Alleviation, Part

time Official Director of HPL.

6.2.3 Human Resources

The company has on its pay rolls 291 regular employees,

124 Contract and 31 Compassionate appointees as on 31-12-

2010.

6.2.4 Business Segment

Since last five years HPL is executing Project Management

Consultancy (PMC) works as an executing Agency for

various types of projects all over the country. HPL is

capable of executing & delivering quality projects such as

prefab construction, Mass housing, Institutional Buildings,

Hospitals, University & Training Campuses, Infrastructure

Projects, Shelters, Barracks, Interiors, Furniture, Real

Estate, Third Party Quality Inspection, Reality Advisory, etc

in the prescribed time. This also includes prefab

construction for the Disaster Rehabilitation Project all over

the country. HPL is having operations in 17 States with

CORPORATE HEADQUARTERS AT DELHI and to

facilitate project administration, it has five Regional Offices:

P a g e | 84

� Delhi.

� Patna (Bihar),

� Raipur (Chhattisgarh),

� Shillong (Meghalaya for North-East)

� Trivandrum (Kerala)

Overseas Venture: HPL is now awarded projects for

construction of houses for the Internally Displaced People

(IDP’s) in Northern Sri Lanka. This will be the first overseas

venture of HPL.

6.2.5 Projects

HPL undertakes Projects on turnkey basis i.e. from concept

to completion on Projects Management Services basis in the

following:-

- Mass Housing & Infrastructure works for Slum

Dwellers and Urban Poor,

- Factory Buildings, Institutional Buildings and

Residential Complexes,

- Hospital Buildings,

- Sewerage Treatment Plant,

- Interiors & Furniture,

- Sports Complexes,

- Campus Development,

- Bridges,

- Reality Advisory,

- Prefab Concrete Construction and Pre-Engineered

Steel Structure,

- Third Party Quality Inspection

- Fire Fighting Works etc.

6.2.6 Revival / Capital Restructuring of HPL by Govt. of India

The Govt. of India, Ministry of Housing & Urban Poverty

Alleviation vide its letter No.O-17034/6/2004/H.II/H.IV/AA

dated 16th

September 2009 conveyed its approval regarding

conversion of Govt. of India outstanding loan and interest

thereon amounting to ` 128 Crore as on 31.03.2008 into

Govt. Equity, thereby increasing the Authorized Capital of

the Company from existing ` 10 Crore to ` 138 Crore. The

financial restructuring has since been implemented.

6.2.7 Performance upto 30.12.2010

Since 2008-09, HPL is in profit and the net worth of the

company which was negative in 2007-08 is now positive.

P a g e | 85

TURNOVER / TARGET

0

50

100

150

200

250

300

350

400

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

YEART

urn

ove

r /

Targ

et

Turnover

Target

HPL has also been able to implement the latest pay scales for

CDA 2006 and for IDA 2007 to all its employees.

6.2.8 Turnover

Year Turnover

(`̀̀̀ in crore)

MoU Target

(`̀̀̀ in crore)

2005-06 8.73 NA

2006-07 23.20 NA

2007-08 35.10 335

2008-09 150.32 335

2009-10 162.42 335

2010-11 160.52* 350

*Upto 31-12-2010

The Company is expected to post profit also for the financial

year 2010-2011.

Year Net Worth (`̀̀̀ in crore)

2005-06 -104.9

2006-07 -118.73

2007-08 -132.48

2008-09 +3.06

2009-10 + 5.52

P a g e | 86

6.2.9 Order Book Position

The value of orders to be executed as on 31.12.2010 is as

follows:

(`̀̀̀ in crore)

a) Projects under execution 1124.90

b) Agreement / MoU signed and in process 380.27

c) Projects in Pipe line 295.50

Total: 1800.67 (Approx.)

6.2.10 Corporate Governance

The fabric of Corporate Governance in the Company is

woven keeping in mind transparency and commitments to all

the stakeholders and also to provide quality, fairness and

excellence in the areas of operations. To provide affordable

housing to the people all over the country is the constant

endeavour of the company since its inception. HPL is

committed to continue its efforts towards raising the

standards in Corporate Governance and will also review its

procedures/ systems constantly in order to keep pace with

the fast changing economic environment in the country

6.2.11 Welfare Activity

Due care is taken for the welfare of all the employees. To

redress the grievances of the SC/ST employees, a Cell has

been set-up under the control of the Liaison Officer. This

cell keeps watch over the implementation aspects of

reservation of posts in the Company as per Government

norms. Rosters of recruitment were maintained as per

Government directives

6.2.12 Security & Vigilance

Security arrangements have been tightened in and around the

factory areas. Effective steps were taken for preventive

vigilance, detective surveillance and punitive action.

Surprise checks were conducted by the Chief Vigilance

Officer.

6.2.13 ISO Certification

The Company continues to remain ISO Certified Company

with a certificate of ISO 9001:2008. Audit has been done for

the renewal of certification for the year 2009 and this

certificate was got revalidated up to 05.12.2011 for the

following:

• Designing and production of all Precast Concrete

Components;

• Planning, Designing & Construction of Civil

Engineering Projects;

• Testing of various Civil Engineering raw materials

and products;

• Design of concrete Mixes.

P a g e | 87

Surveillance Audit is conducted after every nine months and

last audit was done on 26-02-2010 by M/s British

Certifications Inc. They have certified that HPL has been

assessed and found to comply with the requirement of ISO:

9001:2008.

6.2.14 List of Major Programmes / Schemes:

Company is engaged in the many major projects like:

(`̀̀̀ in crore)

Sl. No. Name of Agency Value of Project

1. Bihar (JnNURM & IHSDP Works) 293.01

2. Chhattisgarh (JnNURM Works) 148.00

3. North East Region Meghalaya &

Mizoram (JNNURM Works) &

10% lump sum scheme

97.52

4. Delhi Police (Institutional,

Residential & Police Lines)

139.23

5. Para Military Forces

i) Assam Rifles

110.03

6. NRHM / NUALS projects in South

Region

126.94

7. Employees’ State Insurance

Corpn.

89.82

9. Others

i) UBI Lucknow

ii) ICMR Delhi

iii) NLU, Cuttack

iv) Leh- Ladakh Region

v) Income Tax

9.22

1.84

79.20

18.06

12.00

Total: 1124.87

6.2.15 Status of HPL Projects

I. Delhi Police have entrusted works at Mandir Marg, Rohini

Sec-3 & 22, Mukherji Nagar, Pushp Vihar, Khayalla,

Gokulpuri & Janakpuri of approx. `139.23 crore for the

modernization of Police Stations, Residential facilities etc.

- Mandir Marg Housing block handed over. Economic

offence wing will be handed over in May 2011. Work of

Main Police Station and Construction of quarters are in

progress and expected to complete the work by Feb 12;

- Rohini Sec 3 & 22, Mukherji Nagar works are in

progress and expected to complete the work by Oct 11 &

Aug 13 respectively;

II. Projects under Jawaharlal National Urban Renewal Mission

(JnNURM) have already been awarded to HPL in the States

of Bihar, Chhatisgarh, Meghalaya and Mizoram and the

value of the works is approx. Rs 536.24 crore:

III.

o Work at Jogbani, Supaul, Motipur, Sheikpura,

Aurangabad (BIHAR) are going on in full swing; o Construction of Houses under IHSDP Scheme of

JnNURM at Bilaspur (Chhatisgarh) and work at

Shillong Phase-I & II are under progress and

expected to complete the work by Mar 11;

o Works under Integrated Slum Development

Programme are under progress and expected to

complete by Jun 12;

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o Construction of 240 Nos. Houses and Infrastructure

Development work at Nongpoh & RI-Bhol Agency

fixed up, though land on papers handed over but

villagers are not allowing to take up the work;

o Housing project at Laipu, Lawipu Aizawl (Mizoram)

are under progress and expected to complete by Aug

11;

IV. Projects under National Rural Health Mission have been

awarded in the State of Kerala for the value of Approx. `126.93

Crore and are being executed in full swing;

V. Institutional Projects of ESIC (Ministry of Labour) in the

State of Maharashtra and Himachal Pradesh valuing Rs

89.82 Crore are going on in full swing and expected to

complete the work by Mar 11;

VI. Para-Military Forces Projects: Assam Rifles have also

entrusted projects worth approx. `110.03 crore and works

are in progress.

Works at other places are in full swing. Company is also trying to

develop more business in and around NCR of high margin value.

Budgeted P/L A/c for the year ending 31.03.2011 (provisional)

(`̀̀̀ in crore)

Sl. No.

PARTICULAR ACTUAL 2009-10

BUDGETED 2010-11

[A] INCOME

Factory sale including excise 0.010 0.000

Site Work Done

Projects 162.417 180.00

Maintenance services 0.000 0

Other income 3.574 1.000

Other income(Interest on Bank

Deposit) 2.182 1.505

Accretion / {Decretion} in stock -0.004 -0.005

TOTAL[A] 168.180 182.50

[B] EXPENDITURE

Raw Material Consumed & Store 0.262 0.160

Expenses at site 148.405 164.117

Salaries, Wages & Other Benefits 8.376 10.010

P.F & E.S.I 0.844 0.980

Welfare /others 0.317 0.328

Other Expenses 3.467 2.537

Expenses on V.R.S 0.000 0.000

Provision on Gratuity 1.838 1.145

Doubtful Debts 0.000 0.000

Contingencies for set works 0.000 0.000

Leave Encashment 0.326 0.223

Excise Duty & Education cess 0.000 0.000

TOTAL[B] 163.835 179.500

[C] PBDIT [A-B] 4.345 3.000

[D] Depreciation 0.110 0.120

[E] PBIT [C-D] 4.234 2.880

[F] Interest on Govt. Loans 0.000 0

[G] Interest on Bank Overdraft & Other 0.453 0.100

[H] PBT[E-F-G] 3.781 2.780

[I] Tax 0.611 0.500

[J] PAT[H-I] 3.169 2.280

[K] Prior Period Adjustments 0.699 0.100

[L] Net Profit/(Loss)[J-K] 2.470 2.180

P a g e | 89

Position of outstanding certificate & unspent balance upto

31.12.2010:

Ministry has released `1601.42 lakh against North East projects.

HPL had already utilized `1485.29 lakh out of above funds against

its various projects at North East as detailed below:

Name of Project Amount (in lakh)

NE-Itanagar 337.34

NE-Passighat 211.01

NE-Roing 207.73

NE-Seepa/Nirjuli 202.40

NE-Deporzio 210.62

NE-Tawang 316.19

Total 1485.29