Archive · 28 Jul 2026
HUDCO to Raise $2 Billion Overseas
HUDCO, a government-owned company, is planning to borrow $2 billion from foreign sources.
They have already borrowed $700 million and will borrow the rest by the end of 2026.
This money will be used to build houses and infrastructure.
The loans will be in dollars and yen, and the company will use a special facility provided by the Reserve Bank of India to get Indian rupees in exchange for the dollars.
The company aims to increase its total loans to Rs 2 lakh crore by the end of this financial year.
They have also launched a fund to improve cities, which has already approved projects worth Rs 31,000 crore.
HUDCO plans to raise $2 billion through ECBs by December 2026.
Already mobilised $700 million, with $1.3 billion more to be raised.
Loans will be in dollars and yen, using RBI's swap facility.
HUDCO's loan book expanded to Rs 1.73 lakh crore in the April-June quarter.
Urban Challenge Fund has sanctioned projects worth Rs 31,000 crore.
- Who
- Housing and Urban Development Corporation Ltd (HUDCO)
- What
- Raising $2 billion through External Commercial Borrowings (ECB)
- When
- By December 2026
- Where
- Overseas
- Why
- To fund housing and infrastructure projects
Proponents of ECB
Critics of ECB
Economic Impact
Proponents of ECB
ECBs provide necessary funds for infrastructure and housing projects, boosting economic growth.
Critics of ECB
ECBs increase national debt and may lead to economic instability if not managed properly.
- Total Loan Amount
- $2 billion
- Current ECBs Mobilised
- $700 million
- Remaining ECBs to be Mobilised
- $1.3 billion
- Loan Maturity
- 3 years or more
- RBI Swap Fee
- 1.5% annually
- HUDCO's Loan Book
- Rs 1.73 lakh crore (as of June-end)
- Blended Cost of Borrowing
- 6.95% (April-June quarter)
- Urban Challenge Fund
- Rs 1 lakh crore