The Housing and Urban Development Corporation Ltd. (HUDCO) is the premier techno-financing institution established in 1970 by the Govt. of India, Ministry of Urban Affairs & Employment. Over the years, HUDCO has been able to playa significant role in the shelter sector, both for urban and rural housing and also in the provision of city level infrastructure. HUDCO assistance also covers the housing needs of all income categories of the society namely Economically Weaker Section, Low Income Group, Middle Income Group and High Income Group. HUDCO assistance covers assistance for creation of new housing stock as well as repairs, renewal and retrofitting of existing housing stock.

Objectives

HUDCO was established with the following cardinal objectives:

• to provide long term finance for construction of houses for residential purposes in urban and rural areas and finance or undertake housing and urban development programmes in the country
• to finance or undertake, wholly or partly, the setting up of new or satellite towns
• to finance or undertake the setting up of building material industries
• to 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.

In order to realise the objectives for which it was established, HUDCO has implemented a variety of schemes for providing shelter and services, thereby improving the living conditions of the people. Apart from financing housing scheme HUDCO is also contributing to improve the quality of life by augmenting/providing basic community facilities and infrastructure services. Projects involving self help by the beneficiaries are promoted by encouraging sites & services schemes, core housing, skeletal housing, shelter upgradation and so forth. In order to provide basic facilities in the existing house where adequate sanitary disposal systems are not available, financial assistance for basic sanitation schemes is being extended on liberalised terms. HUDCO extends assistance benefiting the masses in urban and rural areas under a broad spectrum of programmes as follows:

Housing
· Urban Housing
· Rural Housing
· Staff Rental Housing
· Repairs and Renewals
· Urban Employment through Housing and Shelter Upgradation
· Night Shelter for pavement Dwellers
· Working Women Ownership Condominium Housing
· Housing through NGO's/CBO's
· Housing through Private Builders
· HUDCO Niwas - HUDCO's individual loan lending window 

Infrastructure
· Land Acquisition
· Integrated Land Acquisition and Development
· Basic Sanitation
· Environmental Improvement of Slums
· Utility Infrastructure
· Social Infrastructure
· Economic and Commercial Infrastructure 

Consultancy Services
Consultancy in Housing, Urban Development and Infrastructure 

Building Technology
· Building Centres for Technology Transfer at the Grass Roots
· Building Material Industries 

Research and Training
· Capacity Building and Technical Assistance to: all Borrowing Agencies
· Research and Training in Human Settlements

Operational Highlights of HUDCO

Cumulatively, till August, 2001 HUDCO has sanctioned a total of 14,651 schemes involving a total projects cost of Rs.54,722 crores with HUDCO's loan component of Rs.36,263 crores. An amount of Rs.25,603 crores has been released so far. HUDCO's assistance has helped in construction of 12.56 million residential units, development of over 4.86 lakh residential plots and over 4.14 million sanitation units and in undertaking 1851 urban infrastructure schemes effectively improving the living conditions in the urban and rural areas throughout the country. The details relating to units financed/promoted are as under:
· Total Residential Dwelling Units financed - 125,63,304 
· Economically Weaker Sections: 103,19,615 
· Lower Income Group: 13,49,154 
· Middle Income Group: 4,32,537 
· Higher Income Group: 1,97,772 
· HUDCO Niwas: 2,64,226 

SOCIAL ORIENTATION IN HUDCO'S OPERATIONS

A significant social orientation has been consciously captured in the nature of assistance given by HUDCO. With a clear cut portfolio allocation of the financial assistance to serve all groups, of the total 125.63 lakh residential units supported allover the country, 113.68 lakh houses benefit the economically weaker sections and lower income groups.

Many support initiatives have been taken by making available affordable finance at low rates of interest and longer repayment periods to the EWS and LIG households and also extending assistance through Building Centres for construction of cost affective affordable houses. Appropriate guidance is also being given for using land in an intense and efficient way for the housing needs in reference to the socio-cultural living habits of the people and also covering the housing needs linked with their vocational needs.

HUDCO is the only institution with a clear cut social mandate to provide financial support for affordable shelter to the EWS/LIG categories.

HUDCO earmarks 55% of its housing portfolio funds to Low Income Groups and Weaker Sections. 

Category  Financed          Percentage Financed Allocation of HUDCO's Housing Portfolio
EWS + LIG  25+30=55%
MIG + HIG    25+20=45%

Coupled with ceiling cost and 55 per cent of housing resources allocation for EWS and LIG, have helped sanction of over 91 % of the houses for these income groups. HUDCO's pattern of financing incorporates significant provisions that facilitate the poor in gaining access to shelter. The major elements include 
55% of the housing finance to Weaker Sections and Low Income Groups. Lower Interest Rates to Weaker Sections and Low Income Groups
. Lower the. unit cost, higher is HUDCO's loan component . Longer Repayment Period for the EWS/LIG Category EWS LIG MIG/HIG 

Present Rate of Interest0% 12.75/I3% 13.50/14%
Repayment Period
15 Years 10/15 Years 5/15 Years
Extent of Finance
900/0 85% 80%

Contribution to 2 Million Housing Programme:

HUDCO has made a significant and monumental contribution to the Additional 2 Million Housing Programme, envisaged in the National Agenda of the Government. The ambitious programme envisages provision of additional 20 lakh houses every year. Of this, HUDCO was assigned a target of 10 lakhs with 6 lakhs to be provided ill rural areas and 4 lakhs in urban areas. 

During the last three years, i.e. 1998-2001, against a total target of 30 lakh housing units, HUDCO has supported 33.83 lakh units. Of this, 20.21 lakh units are in rural areas and 13.62 lakh are in urban areas.

HUDCO's Operations in the Infrastructure Sector

HUDCO remains the market leader in financing city level urban infrastructure projects. HUDCO, today, extends 85% of the Indian institutional funding for urban infrastructure. HUDCO opened out its urban infrastructure window II years back, with a view to give specialised attention to the critical segments of infrastructure development in cities and towns. Cumulatively, as of August, 2001 1998, HUDCO has sanctioned a total of 1851 urban infrastructure projects involving a total project cost of Rs.54 crores with HUDCO's loan commitment of Rs.135.44 crores, as indicated below:

HUDCO's Assistance to Rehabilitation Housing for Natural Calamities

The country is affected by various natural calamities like earthquake and land slides in the hilly terrains and Northern and North Eastern States, cyclone, sea erosion and flooding in the coastal States and flood prone damage in many States. Consequent on these natural calamities, substantial damage to property and people takes place, rendering large number of families, homeless. As a part of the rehabilitation for these people and reconstruction repair and retrofitting programmes for housing taken up by various State Governments. HUDCO has extended its special loan assistance for rehabilitation housing schemes along with assistance of Central State Governments to these important projects. HUDCO has so far extended a total assistance of Rs.2560 crores for taking up over 41.27 lakh residential units in the disaster affected areas, in addition to rehabilitation and improvement of the . affected infrastructure. In addition to the soft loan assistance, HUDCO prepares and distributes technology brochures in local languages on the pattern of Do's and Don'ts in construction in the disaster affected areas, demonstrating the disaster resistant features in construction; establishment of special building centres to assist in the rehabilitation programme and also offer guidance on disaster resistant construction practices, put up demonstration units, adoption of model villages (Adarsh Gram) and model improved slum settlements (Adarsh Basti) to  demonstrate a convergence approach for integrated settlement planning, and also organise special training programmes in the disaster affected areas on disaster resistant construction. These cover the States of Jammu & Kashmir, Punjab. Himachal Pradesh, Haryana, Rajasthan, Uttar Pradesh, Bihar, Tripura, West Bengal, Orissa, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Maharashtra, Madhya Pradesh and Gujarat. Significant initiatives have been taken recently in Uttar Kashi, Latur, Jabalpur, Chamoli & Rudraprayag Regions and Gujarat for earthquake rehabilitation efforts and cyclone and flood affected in Andhra Pradesh, West Bengal and Orissa. Building Centre Movement HUDCO is the nodaI Agency for the implementation of the MOUAE's Programme of establishment of the National Network of Building Centres. Today, the Building Centre movement is truly a national network with 630 building centres approved across the length and breadth of the country. With the Spiraling cost of the building materials and rapid dwindling of traditional materials used for construction activities, HUDCO has been in the forefront of the Building Centre movement, promoting cost effective, durable, aesthetically pleasing materials and techniques. The Building Centres have developed into an effective construction delivery system for affordable housing and also contributing to employment and income generation at local levels. The Building centres have exhibited economy in construction to the extent of 15 to 40%, and have been able to extend training assistance to over 2.5 lakh artisans in various construction trades. The Indian Building Centre movement has gained International recognition with its inclusion in the Best Practices Global 100 List 1998 of the UNCHS (HABITAT).

Human Settlement Management Institute (HSMI)

The Human Settlement Management Institute (HSMI) is the re search and training division of HUDCO, undertaking substantial capacity building initiatives in the field of human settlements, to fulfill the intrinsic requirement of training of the mid-career professionals in this field. HSMI organises training programmes for the officials of HUDCO's Borrowing Agencies as well as for NGOS, Private Sector, Housing Finance Institutions, Project Managers of Building Centres, Senior Officials sponsored by Department of Personnel and Training and Civil Servants. New Initiatives of HUDCO in the 50th Year of India's Independence To commemorate the 50th Year of India's Independence, HUDCO launched a programme for the development of Model Villages (Adarsh Gram)/Model Improved Slums (Adarsh Baste) during the year] 997-98 for providing the positive inputs of physical planning, architectural design, efficient utilisation of land, utilisation of appropriate technologies, user participation, use of innovative/renewable sources of energy, etc. The programme envisages taking up two model villages/model improved slums in all the states and Union Territories in India, with all infrastructure facilities, with around 250 houses in each settlement identified for development. The implementation of the Model Village/ Model Slums will be based on a convergence approach that would incorporate non-conventional and renewable sources of energy application like solar power from photo voltaic cells for street lighting and lighting for houses and community buildings, smokeless chulhas, biogas and energy production through the inputs of Ministry of Non-conventional Energy Sources (MNES) and Khadi Village Industries Commission (KVIC). The programme is extremely popular, and so far, 109 model Village Model Baste have been approved for development. 

Major Thrust Areas

HUDCO's major challenge in the next millennium will be to gear up to cater to the increased demand in housing and urban infrastructure arising from increased urbanization evidenced by about 28 per cent of the total population residing in urban areas in March 200 I, and projected increase substantially in the years to come.

Another thrust area is promotion of environment friendly and ecologically appropriate development to arrest the rapid deterioration in . the quality of life in the cities by providing appropriate and adequate infrastructure facilities. Increased emphasis would be laid on development of new settlements which are sustainable  be it in terms of water management covering rain water harvesting, aquifer-recharging and waste water recycling; solid waste management and recycling through bio-fertiliser production, bio-mechanisation and sanitary landfills; hospital waste management through autoclave and hydroclave mechanisms; integrated transport systems catering for pedestrian needs; need based transport projects covering both public and private transport, transport nagar and mass rapid systems through inter modal convergence. New town or satellite town development is another area which HUDCO would accord priority. This will help to disperse the large populations that migrate into urban areas. Towards promoting increased flow of state-of-the-art technologies, resources and human resources, HUDCO would encourage initiatives that envisage private sector participation and Public-Private People's Partnership. 

HUDCO- VISION 

In the New Millennium HUDCO, as the single largest facilitator of housing and city level infrastructure in India, would continue to pursue its mission to emerge as the market leader in supporting the housing and urban development needs of the emerging 2151 century with the right choice of options for policies, programmes, projects and also building it through the right level of institution in all shades of sectors; namely public, private, cooperative, corporate and individual sectors. As a market leader in this area of techno-financial assistance, HUDCO would emerge as the only organisation of its kind for dealing with the needs of shelter and infrastructure development in the human settlements and make available its techno-financial assistance to benefit the vast multitude of the city and village population and at the same time leading to profitable result. In short, an organisation serving the needs of social objectivity and at the same time .turning out profitable operational results. Geared for providing an increasing quantum of techno-financial assistance in the field of housing and urban development sector, HUDCO's operations truly reflect the essence of its motto of profitability with social justice. HUDCO continues to build foundations for a stronger India by developing sustainable shelter and services for human settlements in harmony with nature to meet the increasing challenges of the third millennium.