Housing and Urban Development Corporation Limited (HUDCO) on Monday (September 8) signed a memorandum of understanding (MoU) with the Nagpur Metropolitan Region Development Authority (NMRDA) to support large-scale housing and infrastructure projects in the Nagpur region. The agreement, though non-binding, is positioned as a key enabler of urban development in one of Maharashtra’s fastest-growing cities.
Funding Commitment and Scope
Under the MoU, HUDCO will explore providing up to ₹11,300 crore in funding over the next five years to support land acquisition, housing, and infrastructure projects in the Nagpur Metropolitan Region. In addition to financing, HUDCO will also extend consultancy services and capacity-building programs to strengthen NMRDA’s planning and execution capabilities.
The MoU was signed in Mumbai in the presence of Maharashtra Chief Minister Devendra Fadnavis, Deputy Chief Minister Eknath Shinde, HUDCO CMD Sanjay Kulshrestha, and other senior dignitaries.
Strategic Significance
- Boost for Nagpur’s Development: The partnership is expected to accelerate the creation of affordable housing, urban infrastructure, and land development projects in the rapidly expanding Nagpur Metropolitan Region.
- Comprehensive Role for HUDCO: Beyond financing, HUDCO will assist in project planning and execution through advisory and technical expertise.
- Long-Term Vision: The ₹11,300-crore commitment over five years reflects HUDCO’s intent to be a major partner in Maharashtra’s urban growth story.
Financial Performance Snapshot
HUDCO’s robust financial position underpins its ability to take on large-scale commitments:
- Q1 FY26 Net Profit: ₹630.2 crore, up 13% from ₹558 crore YoY.
- Net Interest Income (NII): Rose 32% YoY to ₹961 crore from ₹724.7 crore.
- Asset Quality: Significant improvement with Gross NPA at 1.34% (down from 1.67% in March) and Net NPA at 0.09% (down from 0.25% in March), driven by resolution of a long-pending ₹277.68-crore account and write-offs of smaller accounts worth ₹7.27 crore.
- Loan Sanctions & Disbursements: Loan sanctions surged 143% YoY to ₹34,224 crore, while disbursements were steady at ₹12,812 crore.
Market Reaction
On September 8, HUDCO’s shares closed at ₹217.54 on the BSE, up 1.49% (₹3.20), reflecting positive investor sentiment following the announcement.
Outlook
The partnership with NMRDA reinforces HUDCO’s dual role as a financier and technical advisor in India’s urban development agenda. With improving financials and asset quality, the company is well positioned to support large-scale infrastructure and housing projects, particularly in Tier-2 cities like Nagpur that are emerging as economic and industrial hubs.
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