It was created against the backdrop of housing deficit in India in 1960s and 70s, with the objective of addressing issue of housing finance and playing role in urban infrastructure development.[6]
The organisation provides finance for setting up of new towns and also works as consultancy services for the projects of designing and planning relating to Housing and Urban Development programs in India as well as abroad.
HUDCO started financing for development of infrastructures in 1989.[10] The priority was giving for infrastructure facilities including projects in the sectors of drainage, electricity, water supply, sewerage, solid waste management and roads in the urban areas. Later the social infrastructure components like primary schools and play grounds, hostels for working women, healthcare centres, police stations and jails, courts, etc. received benefit of funding for low cost.[11]
Road and Transport
HUDCO has provided term loans for construction of roads and other transportation sectors which includes construction of Airport, Railways, Ports, Metro Rails, Bridges and Flyover, Railway Over-bridges, Subways, Bypasses, Bus Terminal, Parking complexes, Purchase of public transport vehicles, Bus Stops/stations, Intelligent Traffic Management system etc.
In 1994,HUDCO set up a Waste Management Cell for promotion of municipal waste management.[15]
Capacity Building and Consultancy Services: HUDCO provides planning, designing, and urban development consultancy services and technical assistance to state governments, urban local bodies, and other stakeholders. It also organizes training programs and training workshops for professionals.
HUDCO has sanctioned 58 schemes with a project cost of ₹675 crore to provide new systems and to augment the existing systems.[15]
Water Supply
295 water supply schemes, with a project cost of ₹5,285 crore was funded by HUDCO.[15] In 2016, HUDCO has also given finance to Nellore's underground drainage project proposed by Nellore Municipal Corporation.[16]
