The housing ministry will need about Rs 1 lakh crore in the next two-three years for meeting its target to provide assistance to the poor under the PM Awas Yojana or Housing for All scheme. The government has announced to provide roof to every urban household by 2022.
Sources said the ministry has no option left other than raising loan from the market like that of long-term loan raised for irrigation by NABARD. Though earlier there were talks that the ministry was mulling to set up a special purpose vehicle (SPV) to raise the loan, now it has zeroed down on HUDCO, a public sector undertaking under the housing and urban affairs ministry.

"HUDCO has enough capability to raise loan. Once both the Centre and states put more money as its corpus for this special purpose, the agency can raise the required loan. This debt can be repaid with interest to the investors from subsequent budgetary allocation," a source said.....Read more

Source web page:Times of India