Hudco To Shift Focus To Urban Infrastructure Projects

The Housing and Urban Development Corporation (Hudco) has decided to concentrate on urban infrastructure projects in the coming years. The corporation plans to shuffle its business portfolio by laying more emphasis on urban infrastructure rather than its area of core competence, the housing sector.

The main area which Hudco plans to tap are water supply, road construction, solid waste management among others.

Towards this end, Hudco has approached leading consultants to obtain experts opinion on this issue. These consultants are likely to submit their feasibility study report within the next six months. Hudco is expected to implement these plans by this year end. According to sources, Hudco wants to increase the cumulative sanctions for urban infrastructure sector from the existing 25 per cent. The cumulative sanctions for the housing sector as on April 1996 (at 75 per cent) touched Rs 9,000 crore. According to government estimates, the amount required for the development of urban infrastructure in the next five years is estimated at Rs 20,000 crore.

 

As it will be difficult for the government to shoulder this heavy burden, Hudco has decided to come forward to finance the infrastructure projects.