Shri Ajay Maken, Union Minister for Housing & Poverty Alleviation (HUPA) has said that HUDCO can be catalyst in the flagship programme “Rajiv Awas Yojana (RAY)”of the Ministry for providing consultancy support, viability gap funding as well capacity building programme for the implementing agencies. Shri Maken said this at the launch of public issue of Tax free Bonds of Housing and Urban Development Corporation Limited (HUDCO) in the nature of secured redeemable non-convertible debentures here today.
Shri Maken said “ building on the foundations of the learnings from JnNURM, the Govt. of India has come out with a new flagship programme “Rajiv Awas Yojana (RAY)” which has a vision of creating a ‘Slum-free India’ and I expect HUDCO to play an even more challenging role for the success of the programme.” He further stated that under this scheme central assistance would be provided to States who are willing to assign property rights to slum dwellers, for slum redevelopment and creation of affordable housing stock, along with another condition of reserving 15% of the FAR or 35% of the number of dwelling units for EWS or LIG housing. Lauding the role of HUDCO, Shri Maken said that HUDCO has always been an able partner of the Government of India in trying to meet the emerging varied challenges of human settlements, through its lending operations / which support social housing and utility infrastructure /, its design and development efforts, its national level rehabilitation programmes in almost all major natural calamities in the country / and its capacity building initiatives all over the country.
Shri Maken further said that HUDCO has been allowed to raise tax free bonds of Rs. 5,000 crore in the year 2012-13 which will enable HUDCO to lend for its social housing and core infrastructure activities. This is second successive year, the Govt. of India has permitted HUDCO to float tax-free bonds which shows the importance being given by the Govt. of India for the development of housing and core infrastructure in the country. He hoped that with this credit enablement measure, there will be a quantum jump in the overall supply of affordable housing and core infrastructure services in the country. The funds proposed to be raised by HUDCO through this Issue shall be utilized towards lending purposes, working capital requirements, augmenting the resource base of our Company and other operational requirements . The highest coupon rate offered by HUDCO in this Issue is 8.01%. FIIs and NRIs are also eligible to participate in the issue, he added.