From a humble seed funding of Rs 2 crore in 1970 to boost country’s housing sector, Housing and Development Corporation (HUDCO) has come a long way. The company now has an authorized capital of Rs 2500 crore. It is now operating 21 regional offices and 11 developmental offices across length and breadth of the country. The company was granted Navratna status last year and is now financing urban transport, potable water supply, solid waste management, power plants and of course its core housing projects.
In an exclusive interview with Indian Masterminds, the Chairman and Managing Director (CMD) of this Navratna PSU, Mr. Sanjay Kulshreshtha elaborated on HUDCO’s 55-year journey and his vision for the next five years. He reflected on the company’s humble beginnings with the core mandate of institutionalizing the affordable housing sector, a critical need in 1970. He highlighted HUDCO’s evolution from a primary housing financier to a significant infrastructure finance company, adapting to the changing needs of the nation.
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Looking ahead, Mr. Kulshreshtha outlined an ambitious growth roadmap for HUDCO. The company aims to increase its loan book from the current ₹1.2 lakh crore to ₹1.5 lakh crore by FY26 and further to ₹3 lakh crore by 2030. A key focus area is to further reduce NPAs from the current 27%, with the ultimate goal of achieving zero NPAs through robust governance and compliance mechanisms.
Clarifying the historical context of HUDCO’s NPAs, Mr. Kulshreshtha explained that these primarily originated from private sector lending undertaken before 2013, a practice that has since been discontinued. He emphasized that HUDCO currently maintains a clean slate with the state government and government agencies.
Addressing HUDCO’s expertise across sectors, Mr. Kulshreshth affirmed that while power has been a significant area, the fundamental principles of financing – viability, sustainability, and bankability – remain consistent across infrastructure and housing projects. He underscored HUDCO’s commitment to funding quality assets and ensuring the timely completion of projects with desired outcomes.
With a clear vision and a strong foundation built over 55 years, HUDCO stands poised to play an even more crucial role in financing India’s ambitious infrastructure development and realizing the dream of a “Viksit Bharat.” Its continued focus on innovation, sustainability, and prudent financial management will be instrumental in driving the nation’s growth trajectory.
