Hudco in talks to fund ₹40k crore worth projects in Maharashtra

HUDCO is in talks with various infrastructure bodies of the Maharashtra government for funding infrastructure and road projects worth ₹30-40,000 crore.

Mumbai: Mini Ratna Housing and Urban Development Corporation Ltd (HUDCO) is in talks with various infrastructure bodies of Maharashtra government for funding infrastructure and road projects worth ₹30 to 40,000 crore, HUDCO Chairman and Managing Director Sanjay Kulshreshtha said during his visit to Mumbai on Friday.

Hudco in talks to fund ₹40k crore worth projects in Maharashtra

On Thursday, Kulshrestha and his senior team held meetings with several Maharashtra agencies like MSRDC, MMRDA, MSRTC, PWD and discussed various proposals for funding road and infra projects in the state. “Yes we have been in talks for various projects in Maharashtra. I cannot specifically make any announcements till the projects are finalised. We are a unique company which provides 360 degree assistance to states and help states to obtain finance at a low cost,” he said.

Asked if HUDCO had planned affordable housing projects in Maharashtra after the budget focus on housing for the middle classes, Kulshreshtha said the government will formally issue the guidelines and HUDCO will supplement the government’s efforts through funding and capacity building.

The union budget’s focus on increased infrastructure and housing spending had boosted HUDCO’s share price to ₹200 per share after the union budget.

On Friday, the 53 year old company which counts President of India among its big shareholders, announced that it has posted a 33.33% increase in Profit after Tax year on year and 14.94% increase in quarter on quarter in the quarterly results. The HUDCO board had met and approved a propsal to extend the borrowing limits of the company from ₹18,000 crore to ₹35,000 crore.

HUDCO’s market cap has also risen sharply from ₹10000 crore in March 2023 to over ₹40,000 crore in December 2023 and it is in the process of registering as an Infrastructure Finance Company with the Reserve Bank of India.

The company’s loan sanctions have shot up from ₹9202 crore in FY”21 to ₹23,609 crore in nine months of FY’24.