Low-cost housing venture Value and Budget Housing Corporation (VBHC) is looking at expanding its presence in northern India, largely through joint developments.

The company, which has been in talks with International Finance Corporation (IFC) since last year to raise funds by diluting some stake, said a deal would be inked shortly.

“We are looking to raise about Rs 50-75 crore from IFC, the private investment arm of World Bank. The proceeds will be used to launch nine projects across India,” Rajeev Talwar, Director and Head of northern region, VBHC, said.

The company had earlier raised $26 million or Rs 100 crore from the Carlyle Group to construct new projects and purchase additional land. VBHC, founded by P.S. Jayakumar and Jerry Rao (founder of MphasiS), former Citibankers, aims to develop a million affordable homes across 10 cities. It also has funding from HDFC, India Financial Inclusion Fund and Bessemer Venture Partners.

The company, which recently entered Bhiwadi, said it would be expanding to Amritsar, Ludhiana, Pune, Hyderabad, and the National Capital Region in the affordable housing category. V

BHC’s houses are priced between Rs 6.5 lakh and Rs 20 lakh and it offers studio, 1BHK and 2BHK flats.

Talwar said the company was undertaking joint development as it puts less strain on capital.

“Raw material prices are hitting the roof. When we started, we were selling a house at Rs 1,500/sq ft. However, rising input costs have increased the prices to Rs 2,500/feet,” he added.

A technical group constituted by the Ministry of Housing and Urban Poverty Alleviation had estimated urban housing shortage of 26.53 million by the end of 11th Plan (2011-12).

bindu.menon@thehindu.co.in

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