HUDCO may get full-time chief soon

After two years of stop-gap leadership, the multi-crore Housing and Urban Development Corporation (HUDCO) is finally likely to get a full-ti...

After two years of stop-gap leadership, the multi-crore Housing and Urban Development Corporation (HUDCO) is finally likely to get a full-time chairman-cum-managing director soon.

A screening committee constituted and headed by a Cabinet secretary has recommended Senior Executive Director of HUDCO P.S. Rana’s name for the post. If appointed, he will replace L.M. Mehta, secretary of Urban Employment and Poverty Alleviation, who is the acting CMD now.

Though the recommendation is still subject to Minister Bandaru Dattatreya’s clearance, sources in the Urban Development Ministry say: ‘‘It is more a matter of formality and time than anything else. It was the minister’s initiative to have a full-time person heading HUDCO, given the corporation’s importance in the infrastructure projects lined up and the (Vajpayee) government’s scheme of things.’’

Story continues below this ad

Once the ministry gives the green signal, the Cabinet Committee of Appointment will make its formal announcement.

Given HUDCO’s crucial role in doling out crores involved in housing projects — some of them proposed by the Prime Minister and being overseen by PMO — Dattatreya is quite keen to give the corporation some kind of stability.

The government has been pressurising the corporation to lower its interest rates for housing loan to make it competitive with the market rates. However, not being a banking sector organisation, HUDCO has to pay steep interest for the money it raises from the likes of LIC.

Quite a few of the ministry’s crucial housing and infrastructure projects are dependent on HUDCO and with the Lok Sabha elections scheduled for October, the Centre is keen to see them taking off in a big way.

Story continues below this ad

Sources say Dattatreya is also keen to get a pat on his back from the Prime Minister for streamlining affairs in the Urban Development Ministry, which the BJP has consciously retained, ignoring Trinamool Congress chief Mamata Banerjee’s demand.

It was during Dattatreya’s predecessor Ananth Kumar’s time that HUDCO saw a major overhaul of its leadership. First, Kumar replaced V. Suresh (said to have been popular in the HUDCO circles) with a joint secretary in the ministry, Pankaj Jain. Jain lasted six months as the temporary CMD before being replaced by P.K. Pradhan. The term of the current chairman was extended thrice for three months each.