In a strategic step towards enhancing urban infrastructure in Mumbai, the Housing and Urban Development Corporation Ltd. (HUDCO) has signed a Memorandum of Understanding (MoU) with the Mumbai Metropolitan Region Development Authority (MMRDA) on Tuesday, April 8.

This collaboration is aimed at accelerating infrastructure development across the Mumbai Metropolitan Region, with HUDCO pledging to explore and offer financial assistance of up to ₹1.5 lakh crore over the next five years.

This landmark move is seen as a crucial push for India’s largest metropolitan city, which is in constant need of robust infrastructure solutions, from housing and transport to smart city development.

HUDCO to Fund Major Urban Infrastructure Expansion

As per the MoU, HUDCO—a public sector enterprise under the Ministry of Housing and Urban Affairs (MoHUA)—will be instrumental in funding urban infrastructure projects managed by MMRDA.

These projects are likely to span across:

• Metro and rail infrastructure

• Road and highway development

• Affordable housing schemes

• Smart city projects

• Sustainable urban planning

The proposed ₹1.5 lakh crore funding is not a one-time allocation but will be spread over five years, ensuring consistent support to the MMRDA as it plans and executes large-scale projects aimed at improving the urban quality of life in Mumbai and its surrounding areas.

HUDCO’s Role Beyond Financing

The MoU is not limited to financial assistance. HUDCO will also provide:

• Consultancy services

• Capacity building programs

• Technical support to align MMRDA’s project design and execution with national and global standards

By leveraging its expertise in housing and urban development, HUDCO aims to ensure that MMRDA’s projects are financially viable, technically sound, and sustainable in the long term.

This will also involve training sessions, workshops, and development programs aimed at enhancing the technical capabilities of MMRDA personnel and its stakeholders.

HUDCO’s Ambitious Growth Plans for FY25 and FY26

In parallel with this MoU, HUDCO is already on a path of rapid growth and financial expansion.

HUDCO has announced its target to grow its loan book to ₹1.2 lakh crore by FY25, and is confident of touching ₹1.5 lakh crore by FY26. This growth will be driven primarily by:

• Increased funding to infrastructure and housing projects

• Collaborations with state governments and urban authorities

• Policy support under the government’s push for smart cities and affordable housing

According to Sanjay Kulshrestha, Chairman and Managing Director of HUDCO, the company expects to revise its financial targets upwards in FY26 due to strong demand and favourable economic indicators.

“Given the opportunities in these sectors, we expect an upward revision in our targets for FY26. We will take a decision on this in the first quarter of the next financial year,” Kulshrestha told CNBC-TV18.

Recent Financial Developments

In March 2025, HUDCO declared its second interim dividend of ₹1.05 per share for the financial year, reflecting strong financial health and shareholder confidence.

The dividend announcement was welcomed by investors and further signals HUDCO's profitability and commitment to reward shareholders.

HUDCO Share Performance

Following the announcement of the MoU with MMRDA, shares of HUDCO climbed 4.5% to ₹203.5. Although the current stock price is still well below its 52-week high of ₹353, the market has responded positively to the company's aggressive growth strategy and policy-driven collaborations.

The increase in stock value is seen as investor confidence in HUDCO’s expanding role in national infrastructure development.

What This Means for Mumbai’s Infrastructure Future

The Mumbai Metropolitan Region, one of the most densely populated and economically significant zones in India, requires constant infrastructural upgrades. Projects planned by MMRDA often require massive capital outlay, and HUDCO’s commitment will ensure:

• Timely execution of critical urban transport and housing projects

• Improved connectivity through metro and road infrastructure

• Faster implementation of smart and green city initiatives

This partnership could become a template for future state-center collaborations across India’s metropolitan cities.

Government’s Focus on Urban Development

The MoU also aligns with several ongoing government missions and reforms including:

• Pradhan Mantri Awas Yojana (PMAY) – Housing for All

• Smart Cities Mission

• Atal Mission for Rejuvenation and Urban Transformation (AMRUT)

• National Infrastructure Pipeline (NIP)

HUDCO, with its experience and financial muscle, will act as a key vehicle for executing these initiatives in urban centres like Mumbai.

HUDCO’s Expanding Role in India’s Infrastructure Landscape

This move strengthens HUDCO’s position as one of India’s premier institutions supporting nation-building through infrastructure. From affordable housing to complex transport systems, the company is now diversifying and scaling its operations.

Key highlights of HUDCO’s broader strategy include:

• Enhancing public-private partnerships (PPP)

• Strengthening state-level collaborations

• Leveraging technology for smart urban solutions

• Creating robust funding mechanisms for urban bodies

Conclusion

The MoU between HUDCO and MMRDA is a significant milestone for Mumbai’s urban development agenda. With a financial commitment of ₹1.5 lakh crore over the next five years, HUDCO is not just funding infrastructure—it is actively shaping the future of India’s financial capital.

This partnership will accelerate public infrastructure delivery, promote sustainable urbanisation, and further strengthen HUDCO’s role as a key enabler of India’s infrastructure growth story.

As HUDCO moves towards a larger and more ambitious loan book, its vision is clear: to empower India’s cities to meet the challenges of the future—through strategic funding, expert consultancy, and nationwide collaboration.

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