In-principle approval for ₹1,500-crore loan from HUDCO for completion of LIFE houses

The Kerala government has accorded in-principle approval for availing of a loan of ₹1,500 crore on government guarantee from the Housing and Urban Development Corporation Limited (HUDCO) for the completion of houses under the LIFE project for which construction is ongoing.

As per earlier estimates, the government had intended to complete one lakh houses in the 2024-25 financial year. However, due to the paucity of funds, this target could not be achieved.

Currently, a total of 1,27,601 houses, including the 95,922 houses which could not be completed in the previous year as well as the 31,679 houses planned for 2025-26, are at various stages of construction. For this purpose, an amount of ₹1,100 crore is required.

Aid to local bodies

In addition, ₹400 crore is required for providing aid to local bodies which are providing houses for an additional number of Scheduled Castes and Scheduled Tribes beneficiaries. The government has now approved the availing of a total of ₹1,500 crore as loan, out of which ₹750 crore will be availed of in the current year and the remaining in 2026-27.

The loan will be repaid from the development fund of the local bodies over a period of 15 years.