Hudco May Foray Into Insurance, Banking

Apart from doubling the equity base of the Housing and Urban Development Corporation (Hudco) from the present Rs 1250 crore to Rs 2500 crore, the government is planning to diversify Hudco's role into insurance and banking as well, Urban Development minister Ananth Kumar said while reviewing the corporation's performance.

"Hudco has a major potential to make forays into banking and insurance sectors," he said adding these were intimately linked with massive investments made for housing and infrastructure development.

In order to boost housing sector, Kumar said, line of credit would be made available to urban local bodies and other implementing agencies.

Hudco could play a major role in the establishment and management of challenge and bond funds for infrastructure and capacity building, he said.

Emphasising on Hudco's consultancy upgradation for speedy project implementation, he suggested expansion of its consultancy wing at all zonal offices.

Commenting on reaching 'housing for all' goal by 2010, the minister said Hudco had a significant role in combining Rs 1,000 crore grant meant for Valmiki - Ambedkar Basti Awas Yojana with additional Rs 1,000 crore loan while constructing four lakh housing units.