About
Housing & Urban Development Corporation Ltd
HUDCO was incorporated as 'The Housing and Urban Development Finance Corporation Private Limited' on April 25, 1970, as a Private Limited Company and granted a certificate of incorporation by the then Registrar of Companies, Delhi. Subsequently, name of the Company was changed to 'Housing and Urban Development Corporation Limited' and a fresh Certificate of Incorporation dated July 9, 1974, was issued by the then Registrar of Companies, Delhi & Haryana. Presently, the Company is a Public Sector Undertaking engaged in providing loan financing for housing and urban infrastructure projects in India.
In 1977, HUDCO launched rural housing schemes for providing loan assistance for construction of rural houses. In 1986, the company established the Human Settlement Management Institute, the research, and training division of the company. In 1988, the company commenced urban infrastructure financing. In 1996, the company was notified as a public financial institution under Section 4A of the Companies Act, 1956 by the Department of Company Affairs, Ministry of Finance, GoI. In 1999, HUDCO began retail financing under the brand name HUDCO Niwas.
In 2012, the company's profit after tax (PAT) crossed Rs 600 crore marks. During the financial year 2011-2012, the company raised Rs 5000 crore through an issue of tax-free bonds, as allocated by the CBDT in its budget allocation for the year, including Rs 4684.7 crore raised through a public issue of tax-free bonds.
In 2013, HUDCO's PAT crossed Rs 700 crore mark. During the financial year 2012-2013, the company raised Rs 2401.35 crore through a public issue of tax-free bonds, as allocated by the CBDT in its budget allocation for the year.
During the financial year 2013-2014, HUDCO raised Rs 4987.12 crore through an issue of tax-free bonds, as allocated by the CBDT in its budget allocation for the year, including Rs 4796.32 crore raised through a public issue of tax-free bonds. During the financial year 2015-2016, the company raised Rs 5000 crore through an issue of tax-free bonds, as allocated by the CBDT in its budget allocation for the year including Rs 3500 crore raised through a public issue of tax-free bonds.
Government of India (GoI) carried out disinvestments of 20.4 crore shares constituting 10.19% stake in HUDCO via an initial public offer (IPO) in May 2017. Post successful completion of the IPO, GoI's stake in HUDCO came down to 89.81% from 100%. HUDCO shares were listed on the bourses on 19 May 2017.
On 28 March 2018, the Board of HUDCO approved the annual borrowing programme of maximum upto Rs 40000 crore for the financial year 2018-19 through various sources/modes. The borrowing limit includes the power to make a private placement of non-convertible debentures (NCDs), subject to the approval of the shareholders of the company in general meeting.
On 28 May 2018, HUDCO announced that an old default case of a borrower has been substantially resolved after prolonged litigation, where HUDCO has received an amount of Rs 317 crore, against the dues of Rs 469.38 crore as on 31 March 2018.
Housing and Urban Development Corporation Limited (HUDCO) came out with an Initial Public Offering (IPO) of 204,058,747 equity shares of Face Value of Rs 10 each for cash at a price of Rs 60 per equity share aggregating to Rs1209.78 Crores. There was no fresh issue of shares by the company. The IPO was priced at Rs 60 per share.
As at 31st March 2019, 89.81% of the shareholding is held by President of India through the Ministry of Housing and Urban Affairs (MoHUA) - 69.08% and Ministry of Rural Development (MoRD) - 20.73% respectively and balance 10.19% is held by Public.
During the year 2019, HUDCO completed the consultancy services for construction of Office building for Archaeological Survey of India at Tilak Marg, New Delhi.
As on 31st March, 2019, HUDCO has three Joint Venture Companies namely a) Shristi Urban Infrastructure Development Ltd. (SUIDL) b) Pragati Social Infrastructure & Development Ltd. (PSIDL) and c) Signa Infrastructure India Ltd. (SIIL), Further, there is one associate namely Ind Bank Housing Limited. In the case of an associate Company, namely Ind Bank Housing Limited, the company made an investment of Rs 2.50 crore in its equity, being 25% of the paid-up equity share capital. The Company provided for full diminution in the value of investment made in IBHL.
During the year 2019, HUDCO sanctioned 55 proposals for financial assistance of Rs 7,196 crore (inclusive of proposals for loan assistance of Rs 893 crore in North Eastern States) under different sectors like water supply, drainage, power sector, social infrastructure, commercial infrastructure, road & transport, etc., against which, an amount of Rs 3,594 crore has been released.
During the first quarter of financial year 2019-20, ended 30th June 2019, The Company sanctioned a total loan of Rs 4211.08 crore and disbursed an amount of Rs 3838.88 crore.
In Mar'20, HUDCO sanctioned a total of 17,284 housing and urban infrastructure projects, with a total loan component of Rs. 2,08,039 crore and has made a cumulative disbursement of Rs. 1,71,216 crore. During the year 2019-20, it sanctioned projects, with a loan amount of Rs. 3,790 crore in housing; and sanctioned urban infrastructure projects with a total loan amount of Rs. 16,124 crore respectively.
In Mar'21, HUDCO sanctioned a total of 17,301 Housing and Urban Infrastructure (UI) projects with a total loan of Rs. 2,13,082 crore and disbursed an amount of Rs. 1,79,527 crore. Further, it has sanctioned financial assistance to more than 192.45 lakh housing units both in rural and urban areas in the Country of which, 183.19 lakh (95.19%) pertains to EWS/LIG categories. In addition, under HUDCO Niwas, a retail lending window, it sanctioned financial assistance of Rs. 6,846 crore to 3.86 lakh individuals and disbursed an amount of Rs. 5,160 crore. Under Housing Sector, it sanctioned projects with loan assistance of Rs. 937 crore, inclusive of Rs. 21 crore under HUDCO Niwas, thereby facilitating construction of 12,488 dwelling units, of which Rs. 3,701 crore was released during current year. Under Urban Infrastructure portfolio, it sanctioned 32 urban infrastructure projects, with loan assistance of Rs. 8,265 crore across various sectors like Water Supply, Metro, Power, Social Infrastructure, Commercial Infrastructure, Road & Transport etc. of which Rs. 4,622 was released during the current year.
During the year 2021-22, 8% of equity shareholding in HUDCO comprising of 16,01,63,774 equity shares of face value of Rs. 10/- each through Ministry of Housing and Urban Affairs (MoHUA), Government of India was divested by the President of India, being the promoter in the month of July/August, 2021. HUDCO has sanctioned projects with a loan assistance of Rs. 1,759 crore, inclusive of Rs. 13 crore under HUDCO Niwas, thereby facilitating construction of 88,523 dwelling units. It sanctioned 32 projects with a loan assistance of Rs. 18,904 crore covering various sectors like Water Supply, Sewerage System, Social Infrastructure, Commercial Infrastructure, Road & Transport, Metro, Power, etc. Further, a release of Rs. 7,607 crore was made during the year in various schemes. In FY 2021-22, HUDCO supported the flagship programs by extending financial assistance of 600 crore to Rajasthan Urban Drinking Water Sewerage & Infrastructure Corporation (RUDSICO). It also sanctioned, financial assistance to mega projects of Public Health Department, Government of Maharashtra, Bihar State Road Development Corporation Limited and Maharashtra State Road Development Corporation Limited, Bihar Rajya Pul Nirman Nigam Limited, Tamil Nadu Water Supply and Drainage Board, Kerala Infrastructure Investment Fund Board (KIIFB), etc.
During 2021-22, HUDCO's Construction and Consultancy Wing worked on design concepts remaining responsive to clients' diverse requirements. Some new assignments, while continuing work on other ongoing prestigious assignments, include providing consultancy services for the construction of Housing Complex for Tripura Tribal Areas Autonomous District Council at Tripura. HUDCO completed the preparation of the Housing for All plan of action under PMAY (U) of 61 towns for the State of Karnataka, and, the Design Consultancy services for Construction of Officers' Quarters with Allied Services (Phase-III) for M/s Hindustan Aeronautics Limited, Bangalore, designed for GRIHA rating is on the verge of completion. As part of environmental engineering consultancy, it undertook appraisal of 8 Integrated Management Plans under National Plan of Conservation of Aquatic Eco-systems (NPCA) namely 2 each in Mizoram, Chandotal Wetland in Basti- U.P, East Kolkata Wetlands- WB, and, Jagatpur Gam Talav Wetland-Bihar.
Under Housing sector during 2022-23, HUDCO sanctioned 5 projects with a loan assistance of Rs 3,466 Crore, thereby facilitating construction of 3,49,308 dwelling units. Loan release for an amount of Rs 1,838 Crore was made during 2022-23. Similarly, under the Urban Infrastructure portfolio, the Company sanctioned 36 projects with a loan assistance of Rs 21,106 crore covering various sectors like Water Supply, Smart City, Transport Nagar, Social Infrastructure, Commercial Infrastructure, Road & Transport, Power, etc. Further, a release of Rs 6,628 Crore was made during the year in various schemes.
In the Financial Year 2022-23, HUDCO provided financial assistance of Rs 2,385 crore for construction of 63,246 DUs under Affordable Housing Project (AHP) and 2,56,880 DUs under Beneficiary-Led-Construction (BLC) vertical totalling 3,20,126 DUs covering 28 districts and 169 ULBs. Besides, it had sanctioned a scheme for loan amount of Rs 1,000 crore to Telangana Housing Board (THB) to construct 28,979 DUs (22,772 DUs in Rural areas and 6,207 Units in Urban Areas of Telangana.
In FY 2022-23, HUDCO provided financial assistance of Rs 170 crore for Implementation of Smart City Project at Kohima and Rs 50 crore for Infrastructure Development work in Udaipur Smart City, Rajasthan. The other major project sanctioned in the financial year was water conservation schemes at various Districts of Maharashtra (Loan Rs 3,500 crore) and Construction of various infrastructure development works in ULBs in Rajasthan (Loan Rs 2,235 crore). HUDCO provided loan assistance for JP Ganga Path, Phase-2 in Bihar (Loan Rs 541 crore), Infrastructure facilities for EWS Housing units under PMAY-HFA (Urban), Phase-II, in the State of Andhra Pradesh (Loan Rs 750 crore), Construction of 4 lane elevated corridor Patna, Bihar (Loan Rs 275 crore), etc. HUDCO had sanctioned Rs 2,000 Crore to Kerala Infrastructure Investment Fund Board (KIIFB) for improving the medical infrastructure in the State and out of which an amount of Rs 1,000 Crore released.
Housing & Urban Development Corporation Ltd
Chairman Speech
Dear Shareholders, Ladies & Gentlemen,
The world is witness to India's resurgent growth story. Amidst the
heightened global economic uncertainty where the global growth is likely to bottom out at
around 3.0 per cent in 2023-24, India continues to remain a bright spot' as the
fastest growing economy in the world and on track to be the 3rd largest economy
by financial year 2028. Though the global pandemic largely receded by the onset of
financial year 2022-23, the twin impacts of geo-political tensions arising out of
Russia-Ukraine war and emergence of global inflationary pressure posed hurdles and
uncertainties to the global economic growth during financial year 2022-23. The interest
rates were seen moving up as major central banks, including Reserve Bank of India (RBI)
resorted to hiking the policy rates to combat inflation, pushing up domestic lending and
borrowing rates. However, your Company successfully navigated through this uncertain
business environment during financial year 2022-23, by registering overall loan sanctions
of `24,572 crore and disbursements of ` 8,466 crore during the financial year.
I would like to share the highlights of HUDCO's performance during
financial year 2022-23, vis-a-vis the economic environment, challenges faced and future
outlook of the Company, which would clearly demonstrate that your Company is on a high
growth path in its continued efforts for building assets for the nation.
1. Economic Environment
India's growth momentum would continue to be the fastest in the
next two years as per IMF-World Economic Outlook Update Report,
July 2023, with the highest growth rate of 6.1 per cent in 2023-24 and
6.3 per cent in next fiscal. As per latest data released by National Statistical Office
(NSO), the estimated growth in real GDP during 2022-23 was 7.2 per cent(Provisional
estimates of national income for 2022-23, dated 31st May 2023).
Growth was supported by a visible pick-up in the services sector. The disaggregated data
showed that the Q1, Q2, Q3 & Q4 GDP had grown by 13.1%, 6.2%, 4.5% & 6.1%
respectively in 2022-23, particularly the Q4 growth was better-than-expected.
During the financial year 2022-23, RBI raised the policy repo rate six
times between May 2022 and February 2023, from 4% to 6.5% to subdue the inflationary
pressures. This resulted in a high interest regime in the domestic economy posing
challenges to domestic growth prospects. Further, as per RBI's latest monetary
statement (June 2023), the GDP growth is likely to be 6.5 percent this fiscal on the back
of supportive domestic demand conditions. This is indicative of India's continued
economic resilience and strong macro- economic fundamentals.
2. Sectoral Overview and Government Policy Initiatives
One of the key reasons for India's sustained growth is the
contineous investment in real estate sector with its strong income and employment
multiplier effects through forward' and backward' linkages with
other industries in the economy. The Govt. of India's focus on
infrastructure-led economic growth' is further outlined through Union Budget
2023-24, with capital investment outlay for infrastructure has been increased by 33% to
`10 lakh crore, which is 3.3 per cent of GDP. States and cities will be encouraged to
undertake urban planning reforms and actions to transform cities into sustainable
cities of tomorrow'. Through property tax governance reforms and ring-fencing user
charges on urban infrastructure, cities will be incentivized to improve their credit
worthiness for Municipal Bonds. Further, similar to the RIDF, an Urban Infrastructure
Development Fund (UIDF), through use of priority sector lending shortfall, has been
established and being managed by the National Housing Bank, which will be used by public
agencies to create urban infrastructure in Tier 2 and Tier 3 cities. The outlay for
Pradhan Mantri Awas Yojana (PMAY) has been enhanced by 66 per cent to over `79,000 crore (Union
Budget speech 2023-24).
3. Emerging Issues in Sustainable Urbanisation, Housing and
Urban Infrastructure
India holds the current Presidency of economically powerful G20
countries. Adopting the Indian philosophy of "Vasudhaiva Kutumbakam"- One
Earth One Family One Future, the G20 Presidency provides a strong platform for
furthering our resolve to achieve the UN Sustainable Development Goals (SDGs) within the
defined timeline of 2030, particularly sustainable urbanization, resilient infrastructure
development, addressing climate change, green economic growth and transformative habitat
development through 5 key pillars: Finance, Technology, Inclusion, Partnerships and
Capacity Building. Further, various available data and Reports, such as World Bank Report,
NIP Report, etc., point towards a sustained increase in urbanisation level and consequent
increase in investment in housing and urban infrastructure sectors. The Government of
India has been undertaking various policy measures for orderly & sustainable
urbanisation and catalysing steady flow of investments into the housing and urban
infrastructure sector. All these emerging developments have great potential for HUDCO to
play catalytic roles in addressing the requirements of sustainable & transformative
habitat development.
4. Operational and Financial Performance
HUDCO in its glorious journey of 53rd years, since its
inception in 1970, has cumulatively, as on 31st March 2023, sanctioned a total
of 17,335 housing and urban infrastructure projects with a total loan of `2,36,555 crore
and disbursements of `1,96,612 crore. Further, your Company has sanctioned financial
assistance to more than 196.48 lakh housing units both in rural and urban areas in the
Country, of which 187.27 lakh (95.31%) pertains to EWS / LIG
categories. In addition, under HUDCO Niwas, a retail lending window, your Company has
cumulatively sanctioned financial assistance of `6,871 crore to 3.86 lakh individuals and
released an amount of `5,178 crore.
The Operational and Financial highlights during the financial year
2022-23 are as follows: a) Under Housing sector, HUDCO has sanctioned 5 projects with a
loan assistance of `3,466 crore, inclusive of `12 crore under HUDCO Niwas, thereby
facilitating construction of 3,49,308 dwelling units. An amount of `1,838 crore has been
released (inclusive of `9 crore under HUDCO Niwas) during the financial b) Under the Urban
Infrastructure portfolio, HUDCO has sanctioned 36 projects with a loan assistance of `21,106
crore covering various sectors like Water Supply, Smart City, Transport Nagar, Social
Infrastructure, Commercial Infrastructure, Road & Transport, Power, etc.
Further, a release of `6,628 crore was made during the year in various schemes. c) HUDCO
is actively participating in Government of India flagship programmes such as Smart City
Mission (SCM), Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Jal Jeevan
Mission (JJM), etc. In the financial year 2022-23, HUDCO has provided financial assistance
of `170 crore for Implementation of Smart City Project at Kohima and `50 crore for
infrastructure development work in Udaipur Smart City, Rajasthan. d) Your Company has
reported total income for the financial year 2022-23 at `7086.18 crore (previous year
`6997.66 crore) inclusive of other income of `36.72 crore (previous
year `43.58 crore), while the Profit before Tax (PBT) for the year was `2289.41 crore
(previous year `2345.94 crore) and Profit after Tax (PAT) was`1701.62 crore (previous year
`1716.60 crore). During the period, your Company has maintained the pace of growth with a
growth of 1.26 % in total income and marginal decline of 2.41% in Profit before Tax (PBT).
Your Company has registered a growth of 6.75% in its net worth that has reached `15,445.25
crore in financial year 2022-23 from `14,468.32 crore in financial year
2021-22. e) The Board of Directors of your Company had earlier approved
payment of interim dividend @ 7.50 %, i.e., `0.75 per equity share having face
value of `10/- each, totalling to `150.14 crore on the paid-up equity share capital of the
Company in March, 2023 and the same has been paid. Further, the Board of Directors have
also recommended payment of final Dividend @ 31.00 %, i.e.,`3.10 per equity share, having
face value of `10/- each, for the financial year 2022-23, subject to approval of the
shareholders at the ensuing 53rd Annual General Meeting. f) As at the end of
the financial year ended 31 st March 2023, HUDCO reported Gross NPA of
`2,759.17 crore, which constitutes 3.42% of total loan portfolio. The Net NPA as on 31st
March 2023 is `407.25 crore which constitutes 0.52% of Net loan outstanding as against MoU
target of 0.35%. During the year 2022-23, an amount of `145.58 crore was recovered from
the accounts which were in NPA as on 31.03.2022. As on 31st March 2023, Loan
Overdue to Net Loan Assets ratio is 3.71% as against MoU target of 6.50%. g) During the
year, HUDCO has supported projects in the North-Eastern Region, and sanctioned 9 housing
and urban infrastructure schemes with loan amount of `279.13 crore in the States of Assam,
Tripura, and Nagaland.
5. Credit Rating of HUDCO
During the financial year 2022-23, the Company's long-term
domestic borrowing programme was awarded the highest credit rating of
IND AAA/Stable', [ICRA] AAA (Stable)' and
CARE AAA [Triple A] Stable' by M/s India Ratings & Research (IRRPL), M/s
ICRA and M/s CARE Ratings respectively. The Company also got its short-term borrowing
programme rated, obtaining the highest rating of "IND A1+', [ICRA]
A1+'' and CARE A1+ [A One Plus]', by the above-mentioned Credit
Rating Agencies. As on 31st March, 2023, HUDCO for its International Borrowing
Programme continued to enjoy International Credit Rating of Baa3' with Stable
outlook and BBB-' with Stable outlook, respectively, from Moody's and
FITCH, International Credit Rating Agencies. Both the assigned ratings are of investment
grade and are at the Sovereign ceiling and equivalent as that of our Country.
6. HUDCO's Role in Implementation of Government of India flagship
programmes - for promoting "Pradhan Mantri
Awas Yojana (Urban)- Housing for All"
HUDCO as the premier techno-financial institution assists the Ministry
of Housing and Urban Affairs (MoHUA) in scrutiny and inspection of sample projects / DPRs
under Pradhan Mantri Awas Yojana (Urban) - Housing for All (PMAY-U) Mission prior to their
consideration by the Ministry for sanction of central assistance. As part of the above,
HUDCO during financial year 2022-23, carried out site and/or desk scrutiny of 40 projects
with project cost of `5717.37 crore & GoI assistance of `1504.26 crore covering 1
Affordable Housing in Partnership (AHP)project,38BeneficiaryLed
Construction (BLC) - New Construction/ Enhancement and 1 In-situ Slum Redevelopment (ISSR)
project at various locations in 40 towns/ cities under 13 States/ UTs. Cumulatively up to
31st March 2023, HUDCO has carried out site and/or desk scrutiny of 595
projects for 12.37 lakh DUs with project cost of `57,946.06 crore & GoI assistance of
`18,271.88 crore, covering 62 AHP projects, 511 BLC (New Construction/Enhancement) &
22 ISSR projects (inclusive of 1 ISSR AHP project) at 431 towns/ cities under 34
States/UTs. HUDCO, as a Central Nodal Agency (CNA), has executed Memorandum of
Understanding with 91 Banks/Primary Lending Institutions
(PLIs) for EWS/LIG and 87 Banks/PLIs for MIG-I and MIG-II categories.
During the financial year 2022-23, HUDCO has disbursed subsidy of `628.43 crore to 25,718
beneficiaries under EWS/LIG category. Cumulatively, HUDCO has disbursed CLSS subsidy of
`2635.32 crore to 1,11,955 beneficiaries, throughout the country till 31st
March, 2023. Out of this, an amount of `2297.40 crore has been disbursed to 95,887 EWS/LIG
beneficiaries, while an amount of `337.92 crore has been disbursed to 16,068 MIG category
beneficiaries.
7. Human Settlement Management Institute (HSMI)
Human Settlement Management Institute (HSMI) of HUDCO is involved in
both Research & Training activities in urban sector. The
Quality Management System of HSMI complies with ISO 9001:2015.
Cumulatively, HUDCO's HSMI has benefitted about 54,764 officials programmes from
1985-2023 and continues to provide training support for professionals as well as a forum
for interaction of administrators, professionals, researchers, and others engaged with the
issues of human settlement development. So far, it has provided training sponsored by
Ministry of External Affairs, GoI to more than 1170 overseas participants through 51 ITEC
(Indian Technical & Economic Cooperation) and 6 e-ITEC training programmes.
During financial year 2022-23, HSMI has conducted 19 training programs
on capacity building, imparting training to 1138 participants
whichincludedHUDCOofficialsand participants from ULBs & other stakeholders on diverse
subjects like Only One Earth Living
Sustainably in Harmony with Nature', Analysis of State
Budgets and Generation of Business through Innovative Project Financing', Strategies
for increasing HUDCO's Consultancy income, Stress and Anger Free Living &
lifestyle', and Chair Yoga' etc. HSMI has also conducted 2 e-ITEC
programmes sponsored by the Ministry of External Affairs(MEA),GoI,benefitting23 overseas
professionals on Housing for Sustainable Habitats-Policy Planning, Design and
Technologies' and Making Cities Future Ready Smart and Carbon Neutral'.
HSMI organized the 50th International Training Programme on Realizing the
Right to Adequate Housing in the context of Habitat III New Urban Agenda - Policies,
Planning and Practices' sponsored by MEA, GoI under its ITEC Programme attended by 24
delegates from 20 developing countries and the 51st ITEC training programme on
"Formal solutions to Informal Settlements" attended by 25 delegates representing
19 countries. HSMI also organized CITYNET two-day on-line Training Programme for Senior
and mid-
Urban Local Bodies (ULBs) and HUDCO officials on Balancing the
Budgets of ULBs - Resource Mobilisation v/s levelofficials
Responsibilities' attended by 80 participants.
Further, SHELTER, an ISSN-accredited publication of HUDCO's HSMI,
was brought out twice in the year, April 2022 & October 2022, on the themes of
Inclusive Housing' and Mind the gap: leave no one and no place
behind' respectively.
8. Human Resources Management
HUDCO recognises the value of Human Resources in delivering accelerated
performance and contributing to the growth of the organization. It considers human
dimension as the key to Organization's success. Several initiatives for development
of Human Resources to meet new challenges in the competitive business environment have
gained momentum. Your Company has a team of professionals from various disciplines like
finance, projects, HR, Law, IT, social sciences, etc. The guiding principle of
HUDCO's Human
Resource Management Policy is to ensure availability of competent,
motivated, and effective workforce to facilitate achievement of its full potential at all
times to achieve organizational goals. As on 31st March, 2023, HUDCO had a
workforce of 673 employees which included 214 women employees, constituting 31.79% of its
total strength. Women representations have gone across various hierarchical levels. HUDCO
has been complying with all the directives and guidelines issued by the Government of
India regarding reservation for SC/ST/OBC/PwD/ Ex-Servicemen/ EWS.
9. Corporate Social Responsibility (CSR)
During the financial year 2022-23, an amount of`44,98,12,667/- was to
be incurred on CSR activities, out of which CSR assistance amounting to `26,67,94,463/-
for 19 proposals have been approved. However, no expenditure from the proposals approved
during the year has been incurred, as the agencies were in process of completion of
documentation, etc., and accordingly, the unspent amount has been transferred to the
unspent CSR account opened in a scheduled bank and shall be spent as per provision of CSR
amended rules of Companies Act. Further, during the financial year 2022-23, the Company
has spent a total amount of`3,20,72,843/- for the ongoing projects sanctioned prior to 31st
March, 2021. As on 31st March, 2023, an amount of `18,30,18,204/- being the
unspent CSR amount other than the ongoing CSR activities from the CSR amount allocated for
the financial year 2022-23, shall be transferred to one of the funds specified in Schedule
VII of the
Companies Act, 2013 within the stipulated time period, i.e., on or
before 30th September, 2023. Further, an amount of `25,87,90,596/- being the
unspent CSR amount other than ongoing CSR activities as on 31.03.2022 (`16,99,00,000/- is
the unspent CSR budget of financial year 2021-22 and`8,88,90,596/- up to 2020-21) was
transferred to Swachh Bharat Kosh', a fund specified in Schedule VII of the
Companies Act, 2013 on 30th September, 2022 in accordance with details
mentioned in Annual Report on CSR activities for financial year 2021-22.
10. Corporate Governance
HUDCO is fully committed to promote and establish a fair, transparent,
and ethical system of Corporate Governance. HUDCO ensures transparency in all its
operations with special emphasis on financial prudence, accountability and ensuring
customers/ stakeholders' satisfaction. In terms of regulation 34(3) of the SEBI
(LODR) Regulations, 2015 and DPE guidelines, a report on Corporate Governance forms the
part of the Directors' Report.
11. Future Outlook
The twin impacts of pandemic and Russia-Ukraine war have posed
challenges to the global economic growth but India continues to remain bright spot. The
key to HUDCO's growth prospect is crucially linked to the urbanisation trend of the
country. India's urban population is estimated to increase from 470 million in 2021
to 600 million by 2036 which would constitute about 40% urbanisation level (World Bank
Report 2022).
The Report also estimated that India's cities require a capital
investment of USD 840 billion in urban infrastructure and municipal services till 2036 in
2020 prices. Further, as per National Infrastructure Pipeline (NIP) Report, total capital
expenditure requirement in infrastructure sectors in India during fiscals 2020 to 2025 is
projected at about `111 trillion, including `19.19 trillion for urban infrastructure
projects including affordable housing projects. Thus, with continuous rise in the
urbanisation levels and commensurate increase in capital investment requirement,
HUDCO's potential for quantum jump in business operations augurs well. The future
outlook in terms of Government's sectoral focus and related developments have
positive implications for HUDCO's medium-term and long-term strategies. Demand for
housing across India continued to show resilience as reflected in NHB RESIDEX
Composite price index for 50 cities, which indicates that the
prices in 50 major cities in India has been steadily increasing. The enhanced allocation
for Pradhan Mantri Awaas Yojana (Urban & Rural) by 66% to over `79,000 crore announced
in 2023-24 Union Budget will have positive effect on the housing activities in the
country. It is expected that viability gap funding requirements from the state governments
would gather momentum by the middle of financial year 2023-24. HUDCO being a major partner
in many such housing schemes by the various state governments would stand to benefit.
Similarly, the Govt. of India's flagship programmes, AMRUT 2.0 which seeks to provide
water supply to households, and Smart
Cities Mission, have been allocated `8000 crore each in 2023-24 Union
Budget. The Swachh Bharat Mission (U) has been allocated `5,000 crore in 2023-24. All
these allocations are going to catalyse investments in the urban development sector
thereby creating business opportunities for HUDCO, as it has been proactively assisting
various State Governments in implementation of Government of India programmes. Health
infrastructure needs a boost all over the country. HUDCO would continue to fund Social
Infrastructure Projects like Health Centres, Government Hospitals, Medical Colleges etc.
as the State Governments would be requiring huge funds to expand their Health Care
Infrastructure. HUDCO would also give priority for funding Urban Metro Rail projects of
all major cities, as the Government is keen to expand the metro network in different
cities and is looking for external participation for such projects. In order to align with
the country's net zero goals, the government has adopted Green Growth' as
one of the seven key priorities (Saptarshi) to lead India in its Amrit Kaal'.
HUDCO is therefore poised to increase its funding to green economy' sectors
such as green buildings, sustainable transport, water, waste management, land management
and renewable energy. Further, the Blue Economy' holds the promise of being the
next multiplier of economic growth and well-being and therefore, the GoI's vision of
New India by 2030 highlights the Blue Economy as one of the 10 core dimensions of growth.
As there is need for substantial capital infusion and investment for development of ports,
shipyards, Sagarmala projects and other related infrastructure projects, the blue economy
opens up huge opportunities for HUDCO to substantially increase its business operation in
this segment.
12. Acknowledgements
The Board of Directors of your Company acknowledges its deep sense of
appreciation for the continuous support, guidance and cooperation extended by the
Government of India, especially the Ministry of Housing and Urban Affairs, Ministry of
Rural Development, Ministry of Finance, Reserve Bank of India, National Housing Bank,
Ministry of Corporate Affairs, Department of Public Enterprises, Regulatory/Statutory
Authorities and various other departments of the Central/State Governments, Stock
Exchanges, Depositories, Credit Rating Agencies, Registrar & Transfer Agents,
Debenture Trustee(s) and other agencies. The Board of Directors also conveys its gratitude
for the unstinting support and cooperation given by the shareholders, bondholders, public
deposit holders, Bankers, Financial Institutions, Housing Boards, Development Authorities,
Municipal/Local Bodies, and other stakeholders associated with the Company. The Board of
Directors also acknowledges the valuable suggestions and guidance extended by Comptroller
& Auditor General of India, Statutory Auditors, Secretarial Auditors, and other
professionals associated with the Company.
The Board of Directors also take this opportunity to acknowledge and
appreciate the hard work and efforts put in by HUDCO employees at all levels towards
achievement of the all-round growth of the Company.
Sd/-
Kuldip Narayan, IAS
Chairman & Managing Director
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Housing & Urban Development Corporation Ltd
Company History
HUDCO was incorporated as 'The Housing and Urban Development Finance Corporation Private Limited' on April 25, 1970, as a Private Limited Company and granted a certificate of incorporation by the then Registrar of Companies, Delhi. Subsequently, name of the Company was changed to 'Housing and Urban Development Corporation Limited' and a fresh Certificate of Incorporation dated July 9, 1974, was issued by the then Registrar of Companies, Delhi & Haryana. Presently, the Company is a Public Sector Undertaking engaged in providing loan financing for housing and urban infrastructure projects in India.
In 1977, HUDCO launched rural housing schemes for providing loan assistance for construction of rural houses. In 1986, the company established the Human Settlement Management Institute, the research, and training division of the company. In 1988, the company commenced urban infrastructure financing. In 1996, the company was notified as a public financial institution under Section 4A of the Companies Act, 1956 by the Department of Company Affairs, Ministry of Finance, GoI. In 1999, HUDCO began retail financing under the brand name HUDCO Niwas.
In 2012, the company's profit after tax (PAT) crossed Rs 600 crore marks. During the financial year 2011-2012, the company raised Rs 5000 crore through an issue of tax-free bonds, as allocated by the CBDT in its budget allocation for the year, including Rs 4684.7 crore raised through a public issue of tax-free bonds.
In 2013, HUDCO's PAT crossed Rs 700 crore mark. During the financial year 2012-2013, the company raised Rs 2401.35 crore through a public issue of tax-free bonds, as allocated by the CBDT in its budget allocation for the year.
During the financial year 2013-2014, HUDCO raised Rs 4987.12 crore through an issue of tax-free bonds, as allocated by the CBDT in its budget allocation for the year, including Rs 4796.32 crore raised through a public issue of tax-free bonds. During the financial year 2015-2016, the company raised Rs 5000 crore through an issue of tax-free bonds, as allocated by the CBDT in its budget allocation for the year including Rs 3500 crore raised through a public issue of tax-free bonds.
Government of India (GoI) carried out disinvestments of 20.4 crore shares constituting 10.19% stake in HUDCO via an initial public offer (IPO) in May 2017. Post successful completion of the IPO, GoI's stake in HUDCO came down to 89.81% from 100%. HUDCO shares were listed on the bourses on 19 May 2017.
On 28 March 2018, the Board of HUDCO approved the annual borrowing programme of maximum upto Rs 40000 crore for the financial year 2018-19 through various sources/modes. The borrowing limit includes the power to make a private placement of non-convertible debentures (NCDs), subject to the approval of the shareholders of the company in general meeting.
On 28 May 2018, HUDCO announced that an old default case of a borrower has been substantially resolved after prolonged litigation, where HUDCO has received an amount of Rs 317 crore, against the dues of Rs 469.38 crore as on 31 March 2018.
Housing and Urban Development Corporation Limited (HUDCO) came out with an Initial Public Offering (IPO) of 204,058,747 equity shares of Face Value of Rs 10 each for cash at a price of Rs 60 per equity share aggregating to Rs1209.78 Crores. There was no fresh issue of shares by the company. The IPO was priced at Rs 60 per share.
As at 31st March 2019, 89.81% of the shareholding is held by President of India through the Ministry of Housing and Urban Affairs (MoHUA) - 69.08% and Ministry of Rural Development (MoRD) - 20.73% respectively and balance 10.19% is held by Public.
During the year 2019, HUDCO completed the consultancy services for construction of Office building for Archaeological Survey of India at Tilak Marg, New Delhi.
As on 31st March, 2019, HUDCO has three Joint Venture Companies namely a) Shristi Urban Infrastructure Development Ltd. (SUIDL) b) Pragati Social Infrastructure & Development Ltd. (PSIDL) and c) Signa Infrastructure India Ltd. (SIIL), Further, there is one associate namely Ind Bank Housing Limited. In the case of an associate Company, namely Ind Bank Housing Limited, the company made an investment of Rs 2.50 crore in its equity, being 25% of the paid-up equity share capital. The Company provided for full diminution in the value of investment made in IBHL.
During the year 2019, HUDCO sanctioned 55 proposals for financial assistance of Rs 7,196 crore (inclusive of proposals for loan assistance of Rs 893 crore in North Eastern States) under different sectors like water supply, drainage, power sector, social infrastructure, commercial infrastructure, road & transport, etc., against which, an amount of Rs 3,594 crore has been released.
During the first quarter of financial year 2019-20, ended 30th June 2019, The Company sanctioned a total loan of Rs 4211.08 crore and disbursed an amount of Rs 3838.88 crore.
In Mar'20, HUDCO sanctioned a total of 17,284 housing and urban infrastructure projects, with a total loan component of Rs. 2,08,039 crore and has made a cumulative disbursement of Rs. 1,71,216 crore. During the year 2019-20, it sanctioned projects, with a loan amount of Rs. 3,790 crore in housing; and sanctioned urban infrastructure projects with a total loan amount of Rs. 16,124 crore respectively.
In Mar'21, HUDCO sanctioned a total of 17,301 Housing and Urban Infrastructure (UI) projects with a total loan of Rs. 2,13,082 crore and disbursed an amount of Rs. 1,79,527 crore. Further, it has sanctioned financial assistance to more than 192.45 lakh housing units both in rural and urban areas in the Country of which, 183.19 lakh (95.19%) pertains to EWS/LIG categories. In addition, under HUDCO Niwas, a retail lending window, it sanctioned financial assistance of Rs. 6,846 crore to 3.86 lakh individuals and disbursed an amount of Rs. 5,160 crore. Under Housing Sector, it sanctioned projects with loan assistance of Rs. 937 crore, inclusive of Rs. 21 crore under HUDCO Niwas, thereby facilitating construction of 12,488 dwelling units, of which Rs. 3,701 crore was released during current year. Under Urban Infrastructure portfolio, it sanctioned 32 urban infrastructure projects, with loan assistance of Rs. 8,265 crore across various sectors like Water Supply, Metro, Power, Social Infrastructure, Commercial Infrastructure, Road & Transport etc. of which Rs. 4,622 was released during the current year.
During the year 2021-22, 8% of equity shareholding in HUDCO comprising of 16,01,63,774 equity shares of face value of Rs. 10/- each through Ministry of Housing and Urban Affairs (MoHUA), Government of India was divested by the President of India, being the promoter in the month of July/August, 2021. HUDCO has sanctioned projects with a loan assistance of Rs. 1,759 crore, inclusive of Rs. 13 crore under HUDCO Niwas, thereby facilitating construction of 88,523 dwelling units. It sanctioned 32 projects with a loan assistance of Rs. 18,904 crore covering various sectors like Water Supply, Sewerage System, Social Infrastructure, Commercial Infrastructure, Road & Transport, Metro, Power, etc. Further, a release of Rs. 7,607 crore was made during the year in various schemes. In FY 2021-22, HUDCO supported the flagship programs by extending financial assistance of 600 crore to Rajasthan Urban Drinking Water Sewerage & Infrastructure Corporation (RUDSICO). It also sanctioned, financial assistance to mega projects of Public Health Department, Government of Maharashtra, Bihar State Road Development Corporation Limited and Maharashtra State Road Development Corporation Limited, Bihar Rajya Pul Nirman Nigam Limited, Tamil Nadu Water Supply and Drainage Board, Kerala Infrastructure Investment Fund Board (KIIFB), etc.
During 2021-22, HUDCO's Construction and Consultancy Wing worked on design concepts remaining responsive to clients' diverse requirements. Some new assignments, while continuing work on other ongoing prestigious assignments, include providing consultancy services for the construction of Housing Complex for Tripura Tribal Areas Autonomous District Council at Tripura. HUDCO completed the preparation of the Housing for All plan of action under PMAY (U) of 61 towns for the State of Karnataka, and, the Design Consultancy services for Construction of Officers' Quarters with Allied Services (Phase-III) for M/s Hindustan Aeronautics Limited, Bangalore, designed for GRIHA rating is on the verge of completion. As part of environmental engineering consultancy, it undertook appraisal of 8 Integrated Management Plans under National Plan of Conservation of Aquatic Eco-systems (NPCA) namely 2 each in Mizoram, Chandotal Wetland in Basti- U.P, East Kolkata Wetlands- WB, and, Jagatpur Gam Talav Wetland-Bihar.
Under Housing sector during 2022-23, HUDCO sanctioned 5 projects with a loan assistance of Rs 3,466 Crore, thereby facilitating construction of 3,49,308 dwelling units. Loan release for an amount of Rs 1,838 Crore was made during 2022-23. Similarly, under the Urban Infrastructure portfolio, the Company sanctioned 36 projects with a loan assistance of Rs 21,106 crore covering various sectors like Water Supply, Smart City, Transport Nagar, Social Infrastructure, Commercial Infrastructure, Road & Transport, Power, etc. Further, a release of Rs 6,628 Crore was made during the year in various schemes.
In the Financial Year 2022-23, HUDCO provided financial assistance of Rs 2,385 crore for construction of 63,246 DUs under Affordable Housing Project (AHP) and 2,56,880 DUs under Beneficiary-Led-Construction (BLC) vertical totalling 3,20,126 DUs covering 28 districts and 169 ULBs. Besides, it had sanctioned a scheme for loan amount of Rs 1,000 crore to Telangana Housing Board (THB) to construct 28,979 DUs (22,772 DUs in Rural areas and 6,207 Units in Urban Areas of Telangana.
In FY 2022-23, HUDCO provided financial assistance of Rs 170 crore for Implementation of Smart City Project at Kohima and Rs 50 crore for Infrastructure Development work in Udaipur Smart City, Rajasthan. The other major project sanctioned in the financial year was water conservation schemes at various Districts of Maharashtra (Loan Rs 3,500 crore) and Construction of various infrastructure development works in ULBs in Rajasthan (Loan Rs 2,235 crore). HUDCO provided loan assistance for JP Ganga Path, Phase-2 in Bihar (Loan Rs 541 crore), Infrastructure facilities for EWS Housing units under PMAY-HFA (Urban), Phase-II, in the State of Andhra Pradesh (Loan Rs 750 crore), Construction of 4 lane elevated corridor Patna, Bihar (Loan Rs 275 crore), etc. HUDCO had sanctioned Rs 2,000 Crore to Kerala Infrastructure Investment Fund Board (KIIFB) for improving the medical infrastructure in the State and out of which an amount of Rs 1,000 Crore released.