| The state-owned Andhra Pradesh State Finance Corporation (APSFC) has roped in Housing and Urban Development Corporation Limited (Hudco), a fully-owned enterprise of the Government of India, to co-finance private urban projects such as commercial complexes and gated community ventures.
|
| |
| Disclosing this here on Thursday, A Giridhar, managing director of APSFC, said the share of exposure in financing these projects would be 55 per cent by the state corporation and the remaining 45 per cent by Hudco.
|
| |
| “Earlier, we used to borrow from these entities to finance the projects. Now, we have changed the strategy to co-financing so as to meet the bigger loans required by these projects,” he said.
|
| |
| According to him, the applicants seeking loan assistance to build such urban projects require as much as Rs 10-15 crore for their ventures.
|
| |
| The flow of applications for loan assistance for real estate construction projects is growing ever since the APSFC decided to include building construction as an eligible line of activity for financing, a couple of years back.
|
| |
| To cite an example, while the corporation on Thursday approved 67 proposals of different lines of activities from three districts with a total commitment of Rs 281 crore, commercial complex projects alone required Rs 125.72 crore assistance followed by engineering and allied sector projects with Rs 94 crore.
|
| |
| Requirement for finance is increasing in the SME segment too because of the growing manufacturing activity, Giridhar said. The corporation is also in negotiations with the National Bank for Agriculture and Rural Development (Nabard) for co-financing the agro-processing units being cleared by the APSFC, the MD said.
|
| |
| The corporation aims to disburse up to Rs 900 crore loans to SME projects during the current financial year as compared with Rs 523 crore in 2006-07. |
| |
|
| |
Content Guide
