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HUDCO has signed a five-year deal with the Chhattisgarh government to lend up to ₹1 lakh crore to fund the state’s development projects.
Housing and Urban Development Corporation (HUDCO) is a government-owned company that provides financing and technical services for housing and urban infrastructure projects.
Breaking it down: the company will lend money to Chhattisgarh government-run agencies to carry out infrastructure projects & power and renewable energy projects, up to FY2030. As per the MoU, these agencies plan to borrow up to ₹20,000 crore every year, taking the total funding to ₹1 lakh crore over five years.
Where will the money go: the proposed funding plan sets aside ₹10,000 crore for housing projects. A much larger share of ₹70,000 crore is meant for infrastructure projects such as water supply, sewage and drainage systems, roads, etc.
In addition, ₹10,000 crore is planned for power projects, while another ₹10,000 crore is earmarked for renewable energy and other related projects.
The why: Chhattisgarh is at a key point in its growth journey. While the state is rich in minerals and has surplus power, it still lags in infrastructure.
Under the Chhattisgarh Anjor Vision @2047, the state aims to accelerate inclusive growth, and this project will support its infrastructure push and help meet long-term development goals.
