The Housing and Urban Development Corporation Ltd (HUDCO) has approved a term loan of ₹11,000 crore for the Andhra Pradesh Capital Region Development Authority (APCRDA) to support the development of Amaravati as the state’s new capital city. The loan agreement between HUDCO and APCRDA was formally executed on March 16, 2025.
HUDCO, a Non-Banking Financial Company-Infrastructure Finance Company (NBFC-IFC), provides funding for urban development projects as part of its regular business operations. The loan approval was finalized during the Board of Directors meeting on January 22, 2025.
Despite media reports highlighting the significance of the loan, HUDCO clarified that this was a routine transaction in line with its lending activities. As a result, the event did not require disclosure under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.
This funding is expected to play a crucial role in boosting the infrastructure development of Amaravati, Andhra Pradesh’s proposed capital, which has faced financial hurdles in recent years. The financial backing from HUDCO is likely to accelerate urban development and housing projects in the region.
Stock Market Reaction
As of 9:31 am the shares were trading 0.38% higher at ₹188.80 on NSE
