New Delhi: Housing and Urban Development Corporation Limited (HUDCO) has signed a €200 million loan agreement with KfW, Germany’s state-owned development bank, marking a significant step in mobilising international finance to support India’s clean energy transition and sustainable urban development.
The agreement forms part of HUDCO’s broader strategy to raise funds from global development finance institutions to strengthen energy-efficient, low-carbon and climate-resilient infrastructure across the country.
Strengthening India’s Green and Clean Energy Transition
The partnership with KfW will support the development of energy-efficient urban infrastructure projects, enhance resource efficiency, and contribute to a substantial reduction in carbon emissions. These efforts align closely with India’s national commitments toward green growth, climate action, and sustainable urbanisation.
Officials said the funding will help accelerate investments in projects that promote cleaner energy usage, efficient urban services, and environmentally responsible infrastructure solutions, thereby improving the quality of life in cities and towns.
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Focus on Climate-Resilient Urban Infrastructure
The loan will enable HUDCO to extend financial assistance for infrastructure projects that are resilient to climate risks, such as extreme weather events and resource scarcity. Emphasis will be placed on sustainable housing, water supply, sanitation, renewable energy integration, and urban transport systems, supporting India’s long-term climate adaptation goals.
Advancing Global Partnerships for Sustainable Development
By partnering with KfW, HUDCO continues to strengthen its engagement with leading global financial institutions. The agreement reflects growing international confidence in India’s green infrastructure agenda and underscores the importance of cross-border cooperation in achieving climate and sustainability objectives.
About HUDCO
Housing and Urban Development Corporation Limited (HUDCO) is a public sector undertaking (PSU) of the Government of India under the Ministry of Housing and Urban Affairs. The company plays a pivotal role in financing housing and urban infrastructure projects across the country, with a strong focus on affordable housing, smart cities, sustainable development, and climate-resilient infrastructure. Through innovative financing mechanisms and global partnerships, HUDCO continues to support India’s vision of inclusive and environmentally responsible urban growth.
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