India's Metro Boom Gets a $1 Billion Boost from HUDCO

The Housing and Urban Development Corporation (HUDCO) is launching a USD 1 billion pooled fund to finance Metro projects across India. Currently in talks with multilateral banks, HUDCO aims to provide loans at competitive interest rates by blending foreign and domestic funding sources, including banks. The structure is designed to reduce hedging costs, creating a sustainable financial model for urban transport infrastructure.

With India’s Metro network expected to expand from 1,013 km in 2025 to 2,000 km by 2030, the initiative aligns with the sector’s rapid growth. HUDCO is also promoting public-private partnerships (PPP), particularly for projects where private players contribute significantly to capital investment.

HUDCO’s loan portfolio is projected to reach Rs 1.6 lakh crore by March 2026 and Rs 3 lakh crore by 2030, reflecting its growing focus beyond affordable housing into large-scale infrastructure development.

News by Rahul Yelligetti.