By Business India Editorial

The last few years have clearly been a happening spell for most of the leading PSUs. How would you explain your story? 

Housing & Urban Development Corporation Limited (HUDCO) is a techno-financial institution and a CPSE under the aegis of Ministry of Housing & Urban Affairs, with a mandate for providing financing for housing and infrastructure projects. Since inception in 1970, HUDCO has been a key partner of the government in assisting in implementation of government of India flagship programmes for providing affordable housing and basic infrastructure to all citizens. HUDCO has been on a continual growth path through all the years of its operations even in the face of dynamic market situations and challenges posed during difficult times such as the pandemic. 

The recently conferred ‘Navratna’ status has placed HUDCO amongst the top 20 CPSEs in the country. Considering the budget announcement of 30 million houses for urban and rural areas, HUDCO is fully geared to take up the challenge of social housing delivery under the flagship mission of the government – PMAY2.0. HUDCO with asset quality that is the best in the industry and comfortable debt-equity and capital to risk assets ratio (CRAR) is envisaged to play a vital role in creating assets for the nation and supplementing the efforts of government of India for the creation of sustainable and resilient infrastructure, in line with the vision of Viksit Bharat 2047. The organisation’s ability to adapt to changing environments and its commitment to long-term goals underscore its positive trajectory and promising future. 

Do you believe that there is a better environment of growth for the PSUs? 

The government is creating a level playing field by providing strong governmental backing for PSUs, with policies aimed at boosting infrastructure development, housing, and urban development projects. Initiatives such as strategic disinvestment, improved corporate governance and the infusion of capital have provided PSUs with the necessary impetus for growth. Finance Minister Nirmala Sitharaman has emphasised that PSUs are the cornerstones of India’s economic development, playing a critical role in nation-building. Economic reforms and favourable policies, including ease of doing business and financial inclusivity, have created a more supportive ecosystem for the PSUs to thrive. At HUDCO, we have experienced first-hand positive impacts of these reforms, enabling us to better serve our mission of sustainable housing and urban development. 

In a broader sense, how would you explain your transformation or capacity building in the last decade or so? 

HUDCO has always been responsive to market requirements and has suitably adapted to emerging challenges. Today, HUDCO emphasises robust corporate governance practices, transparency and accountability more than ever. The implementation of advanced compliance measures and adherence to international standards has improved trust and efficiency. The current environment provides CPSEs with greater autonomy in decision-making, apart from streamlined processes which allow for quicker, more strategic responses to market opportunities and challenges. 

The technology interface and digital transformation efforts have enhanced the operational efficiencies of HUDCO, allowing us to better compete with private sector entities. We have ensured the reduction of turnaround time with IT initiatives such as ERP and e-office that are helping us move towards becoming a paperless office. We have shifted towards a more results-driven approach, setting clear targets and goals. The focus on outcomes ensures that projects are completed efficiently and effectively, maximising impact. We are constantly working on developing new products to match sector specific requirements and offer innovative funding mechanism such as escrow of dedicated revenue streams for ensuring on-time repayment of loans extended. Further, we are examining the best industry practices we can replicate, framing ESG policy and updating our policy documents to keep up with changing requirements of the market. 

It is also noteworthy that HUDCO has established its footprint in international markets through maiden ECB borrowings, with an objective to diversify resource base and optimise cost to add strength to HUDCO’s lending activities. While we are strongly focussed on resolution of stressed assets, our priority is to adopt a customer centric approach and ensure maximisation of return to stakeholders by building investor confidence. 

Looking ahead, we are prioritising the upskilling of manpower and developing strong leadership to ensure smooth succession planning. I am sure that HUDCO would emerge as the single largest CPSE and 360 degree solution provider in housing and infrastructure sector through its lending, consultancy and capacity building initiatives, for promoting cleaner, greener, healthy and smarter cities and creation of sustainable and resilient infrastructure, as we strive to achieve the Maharatna status in the coming years.