HUDCO Announces Potential Loan Assistance Worth ₹1 Lakh Cr Under PMAY-U 2.0

The Housing and Urban Development Corporation Limited (HUDCO) has declared its potential to extend loan assistance between ₹75,000 crore and ₹1 lakh crore under the Pradhan Mantri Awas Yojana -Urban 2.0 (PMAY -U 2.0) scheme.

What Happened: The announcement was made by HUDCO on Thursday evening. The anticipated loan assistance under PMAY -U 2.0 is based on the loan amount of more than Rs. 42,000 crore disbursed by HUDCO under the previous phase of PMAY.

HUDCO has also been appointed as one of the Central Nodal Agency (CNA) for channelizing interest subsidy and one of the technical institutions to perform Desk -cum-Site Scrutiny of the projects under the PMAY- U 2.0 scheme. The company stated that the PMAY- U 2.0 scheme guidelines will also provide substantial opportunities for HUDCO in consultancy and capacity-building areas.

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Earlier in August, HUDCO inked a MoU with Yamuna Expressway Industrial Development Authority (YEIDA), a Government of Uttar Pradesh Undertaking, to offer long-term financial assistance in the form of loans for various projects along the Yamuna Expressway.

HUDCO also agreed to provide a wide array of fee-based consultancy services from concept to commissioning in identified sectors and Project Management Consultancy Services from project conceptualisation to completion, at mutually decided terms.

Later in the same month, HUDCO was registered as a Non-Banking Financial Company – Infrastructure Finance Company (NBFC-IFC) by the Reserve Bank of India (RBI). This registration allows HUDCO higher exposure limits for financing various infrastructure sectors in addition to housing, expanding its financial capabilities and increasing its potential impact on India's infrastructure and housing sectors.

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