Housing & Urban Development Corporation Limited CC-Dec24.pdf · 2025-01-23
See, lot of PSU NPAs we had resolved, like AP Housing Board, we have resolved and Mizoram Urban Cooperative Development is resolved and SBI is resolved -- SBI Staff Housing Cooperative Society was resolved and Naya Raipur is resolved. So now it is only the J&K that we are working it out, and I'm sure that in quarter 4, we will be resolving that because we are giving some special emphasis on J&K because of its structure. So we are in discussions with the administration. And very soon, it will be resolved. And last is the Agriculture Produce Market Committee (APMC), (Ahmedabad), which is in the stage of the auctioning. So very soon in quarter 4, we will be resolving that. So the PSU NPA will come to 0 by Q4, that is what we are expecting. And regarding the private sector, there is no new NPA. We had hold sanction of the private sector. And whatever we are doing is for the resolution of these private sector projects only. And as I have stated earlier also, out of INR 2,200 crores NPA, around INR 1,200 crores is under the NCLT and around INR 429 crores is under the DRT. So we are monitoring the cases, and I think we are in the advanced stage of the resolution. And at the same time, we are working our OTS policies also, and we are revising continually in line with the need of the projects. And we are going project to project to resolve those kind of assets and understanding the kind of problem they had faced and how to resolve these assets in the given scenario. Rati J. Pandit: Okay. And my second question is regarding the PMAY Urban Yojana, do we expect any further disbursements in the same? Sanjay Kulshrestha: Yes, yes, it has just started, madam. So it's a very big program of Government of India. If you say PMAY urban and rural around INR 1,200,000 crores is to be infused which takes care of the BLC component and ISS component and the affordable housing on rent and partnership. So what we are expecting that INR 100,000 crores in next 4 to 5 year total disbursement will come from this sector for HUDCO only. Rati J. Pandit: So it will be towards state sector entities? I mean I hope we won't have another round of GN, so it won't... Sanjay Kulshrestha: It will be towards the state sector entities. And other than that, we are also opening our window for the PPP housing projects under PMAY in partnership. So we are opening that window also and we are discussing with the government that how this modelling can be done.
Actually, now we had started working on the idea to become a sole lender. But at the same time, we are open to consortium financing and some of the projects we are financing with REC and PFC also because they had also off late started the infrastructure financing. Of course, there is a cap of 30% with them, which is not there with the HUDCO. So if the project size is too large and as per the regulatory guidelines, we are not able to fund 100%, we are going ahead with the consortium. But having said that, we always prefer to go solo, to have our own terms and conditions and the monitoring framework and everything on us to take care of the loan during the lifetime. But at the same time, regulatory framework has to be taken care. And regarding the urban infrastructure, that's what you were asking, you may be knowing that India has a very high rate of urbanization and a lot of requirement of the capital is coming into the urban sector and a lot of traction is there and which is driven by the aspirations of the people who are coming to the urban side or the urbanization of the rural side. So a lot of infrastructure is required, starting from the housing to water and the basic needs of a person, starting from the sewage to energy, then the roads, then the mobility. So all these things of the urban infrastructure for which HUDCO is mandated to support as a financier. So we have ample opportunities of the funding, and we have been exercising this very judiciously. Of course, presently, our more than 75% of the loans are backed by the government guarantees, but we had off late started doing the cash flow based projects also. So we have a very diverse kind of loan portfolio, and we are continually working with the states to understand their needs and the requirements and to work out some customized loan product also in line with the requirement of the project. Kayur Asher: That's helpful. And sir one other follow-up. So just more broadly, like you mentioned at a high level, if you could help us understand given that large proportion of the lending that HUDCO does is, let's say, backed by the state government guarantees or maybe budgetary provisions. So what is -- what typically restricts the states to, I mean, fund these projects directly from their budget or through, let's say, the SDL borrowings that they do, the market borrowings that they do, given that, I mean, the borrowing rates on those bonds are likely to be much cheaper than what HUDCO would be lending at? So what's driving that demand, if you could help us understand that.