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Housing is regarded as one of the engines of economic growth, and in India it is one of the largest saving and investment vehicles for majority of people in their lifetime and it holds significant financial and emotional importance. Reducing the housing shortage, particularly for economically weaker sections and low-income groups, remains a high priority and a key policy objective for the Government of India. Without increased or more efficient investments, there are risks of housing shortage amid demographic change driven by urbanization. Housing and Urban Development Corporation Limited (HUDCO) has been a long-standing policy-aligned financier for housing and infrastructure development projects which implements multiple initiatives organized by the Government of India.
The proposed loan will provide long-term funding to HUDCO to finance construction of affordable housing projects in India. The financing to HUDCO will be part of the project for construction of 188,130 affordable housing units in the state of Andhra Pradesh and Telangana.
The Project supports the Government of India’s “Pradhan Mantri Awas Yojana” by supporting affordable housing infrastructure development.

