HUDCO aims to address stressful assets within 18 months and plans to be bigger on Infra Urban Play
New Delhi: State-owned Housing and Urban Development Corporation (HUDCO) is considering addressing its stressful assets over the next 18 months. Mint In the interview.
Kulshrestha also said the government-owned lenders aim to expand their urban development footprint and become a comprehensive solution provider in the field. In these aspects, he said, it plans to work with multilateral financial institutions and development financial institutions (DFIs) to establish a dedicated “single-window solution for urban development”.
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“Our priority is the complete solution of HUDCO NPA (Non-performing Assets) ₹20 million, supply coverage is about 86%. Despite being on forums such as NCLT (National Corporate Law Tribunal) and DRT (Debt Recovery Tribunal), we have set an ambitious internal goal to achieve a comprehensive settlement within 18 months from April 1.”
City Footprints
The company marked its 55th Foundation Day on April 25, with plans to increase its footprint in urban infrastructure ecosystems, including waste management, water supply, sewage and drainage. It plans to establish a project management department for this purpose, which will also help arrange projects in partnership with multilateral organizations such as the World Bank and the Asian Development Bank.
To further authorize state and city local agencies (ULBs), HUDCO will help prepare detailed project reports, ensure approval, reduce financing costs, and provide training and system program support. He said: “We also intend to promote public-private partnerships (PPPs), simplify the waste management value chain and develop bankable projects.
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He added: “Looking forward, we plan to work with multilateral agencies and DFI to build a dedicated single-window solution for urban development and be supported by project management to provide integrated, end-to-end project support and position HUDCO as a leading catalyst for urban development.”
Cut financing costs
Talking about the company’s recent measures to reduce financial costs, Hudco said Hudco has adopted a comprehensive cost management and fundraising strategy aimed at reducing capital costs and strengthening its financing base.
He said a key component of this approach is the expansion of international fundraising activities, including through the external commercial borrowing (ECB) route. The company has tapped the Japanese market and proposed a loan for the yen timed loan. It is evaluating other regions to further diversify its funding sources.
“Currently, about 20% of our total lending is denominated in foreign currencies, and this share may increase to 25%, depending on major market conditions at home and around the world. As a cost-conscious organization, we remain committed to optimizing our lending structure while maintaining agility in response to market dynamics.”
Capital Earnings Bonds
He said the government’s recent decision to allow HUDCO to issue 54EC capital gains bonds, which will also help raise funds at lower costs. Under Section 54EC of the Income Tax Act, any long-term capital gains from real estate assets such as land and homes are exempted if the amount is invested in certain public sector companies. Power Finance Corporation (PFC) and Rec Ltd are other companies that can issue these bonds.
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“As we throughout our fiscal year, we are designing a strategic and operational framework to maximize the potential of this tool. These initiatives have begun to produce results. Our weighted average borrowing costs have dropped from 7.10% last year, down from 7.10% to 6.75% from 7.10% to 6.75% in the past year. Advantages over traditional lending tools.”
Hudco borrowed it ₹$5.1 billion in fiscal 25, bringing its accumulated outstanding loans to the surrounding ₹$1 trillion, violating its borrowing plan ₹55,000 million. “For ongoing fiscal (FY26), the target has been increased to ₹$6500 billion is in line with our spending and funding needs. ” he added.
New Delhi: State-owned Housing and Urban Development Corporation (HUDCO) is considering addressing its stressful assets in the next 18 months, said Sanjay Kulshrestha, its chairman and managing director.
In an interview with MINT, CMD said the upcoming government-owned lender aims to expand its urban development footprint and become a comprehensive solution provider in the field. In these aspects, he said, it plans to work with multilateral financial institutions and development financial institutions (DFIs) to establish a dedicated single-window solution for urban development.
“Our priority is the full resolution of the Hudco NPA, which is currently around the corner ₹20 million, supply coverage is about 86%. Despite ongoing litigation on forums such as NCLT (National Corporate) and DRT, we set an ambitious internal target to achieve a full resolution within 18 months starting April 1. ”
He also added that lenders have not added new stress assets in the past three years.
The company observed its 55th Foundation Day program on April 25, planning to increase its footprint in urban infrastructure ecosystems, including waste management, water supply, sewage, sewage, drainage, etc., and will establish a project management department that will also help fund projects in collaboration with multilateral organizations such as the World Bank and the Asian Development Bank.
To further authorize state and city local agencies (ULBs), HUDCO will assist in the preparation of DPRS (detailed project reports), ensure approval, reduce financing costs, and provide training and system program support. He said we also intend to promote public-private partnerships (PPPs), simplify the waste management value chain, and develop bankable projects.
“Looking forward, we plan to work with multilateral agencies supported by Project Management (PMU) and DFIS to build a dedicated single-window solution for urban development to provide integrated, end-to-end project support and to use HUDCO as a leading catalyst for urban development,” CMD said.
Speaking of the company’s recent measures to reduce financing costs, Kulshrestha said Hudco has adopted a comprehensive cost management and fundraising strategy aimed at reducing capital costs and strengthening its financing base.
He said a key component of this approach is expanding our international fund raising, including external commercial borrowing (ECB) route. The company has entered the Japanese market and raised loans that rely on loans and is evaluating other geographical locations to further diversify its funding sources.
“Currently, approximately 20% of our total lending is at the expense of foreign currencies, and this share may increase to 25%, depending on major market conditions at home and around the world. As a cost-conscious organization, we remain committed to optimizing our lending structure while maintaining agility in response to market dynamics.”
He said the government recently designated Hudco as a qualifying entity, and issuing 54EC capital gains bonds will also help raise funds at lower costs. Under Section 54EC of the Income Tax Act, any long-term capital gains arising from the sale of real estate assets (such as land and homes) if the amount is invested in a public sector company notified in this section. Power Finance Corporation (PFC) and Rec Ltd are other companies that allow the issuance of these bonds.
“With the full financial year ahead of us, we are in the process of designing a strategic and operational framework to maximize the potential of this instrument. These initiatives have already begun to yield results—our weighed average cost of borrowing has reduced from 7.10% last year to 6.75% currently. Additionally, the government has permitted HUDCO to raise funds via zero-coupon bonds, which, based on market trends, are expected to offer further cost advantages over conventional borrowing tools,” he said.
In fiscal 25, Hudco borrowed ₹510 million ₹1 trillion ₹5.500 billion borrowed. For ongoing fiscal (FY26), the target has been increased to ₹He said there are 6.5 billion based on our spending and funding needs.
