NHB to invest in Rural HFCs, to rope in corporate partner

Kolkata, Jun 26 (UNI) National Housing Board(NHB), a 100 per cent subsidiary of RBI, will rope in a corporate partner to set up Rural Housing Finance Companies to enable increased flow of institutional credit for rural housing.

Speaking to mediapersons here today at the sidelines of the banking conclave organised by FICCI, NHB CMD S Sridhar said,''We are at the final stages of discussion with two corporates for the rural HFCs.'' However, he refused to give any figure of equity participation.

''The minimum equity participation will be 11 per cent while the maximum can be 26 per cent,'' he said. The NHB would exit from the project within seven years.

While speaking in the banking conclave, Mr Sridhar said in India the total estimated housing requirements would be around 73.96 million units. ''In the urban areas, more than 97 per cent of the total housing requirements will be for poor and low income segment.

While in rural areas, 90 per cent of the requirement is in BPL segment,'' he said.

''We have set a target to reduce the housing shortage by 30 per cent within the next three years. In order to catalyse growth, Rs 75,000 crore institutional credit flow into housing sector will be required,''he said.

UNI