Telangana Gets Rs126.7B HUDCO Loans

27 Jan 2025 CW Team

Since December 2023, when the Congress government assumed office, the state has secured loans worth Rs 126.7 billion from the Housing and Urban Development Corporation (HUDCO) to fund 12 critical infrastructure and housing projects.

Major Allocations:

Rs 30 billion for the Indiramma Housing Scheme to construct affordable housing. Rs 27 billion for acquiring land for the northern stretch of the Regional Ring Road (RRR) in Hyderabad. Rs 22.24 billion for Phase 2 of the Godavari water supply project and rejuvenation of Osmansagar and Himayatsagar reservoirs.

Focus on Low-Interest Loans: The state’s preference for HUDCO and other government-backed agencies stems from competitive interest rates ranging from 9.2% to 10.5% annually, coupled with Telangana's strong repayment track record.

Pending Disbursements: While loans for nine out of the 12 projects are still under documentation, the state expects a smooth release backed by guarantees.

HUDCO's Role: As a public sector entity under the Ministry of Housing and Urban Development, HUDCO finances housing and infrastructure initiatives, including roads, water supply, drainage, and metro systems, supporting states to overcome fiscal challenges.

This reliance on HUDCO loans reflects Telangana's approach to balancing fiscal constraints while advancing development initiatives.

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