The investment arm of the World Bank Group, International Finance Corporation (IFC) has sanctioned USD 250 million (~Rs. 1858 Crore) to HDFC (Housing Development Finance Corporation) Ltd to enhance inexpensive housing finance in India under the themes Affordable & Green housing.
- This loan will support HDFC limited to grow its affordable housing and emerging green affordable housing portfolio by providing access to people with lower incomes.
- This loan is on the lines of India’s target of providing ‘Housing for All’.
- Green affordable housing can help India on its path to deliver on its commitments under the Paris Agreement, to reduce a third of its carbon emissions by 2030 from 2005 levels.
Key Points:
i.At least 25% of the financing has been earmarked for inexperienced inexpensive housing.
ii.Green and energy-efficient housing can help cut emissions, as residential housing accounts for about 24% of the nation’s electricity consumption.
iii.Green inexpensive housing also helps India to achieve its commitments of the Paris Agreement.
iv.IFC has made investments over USD 920 million in housing finance corporations in India for on-lending to retail consumers of inexpensive housing and builders of inexpensive and inexperienced housing.
v.Future Prediction – IFC estimates there’s a USD 1.25 trillion investment opportunity in green residential housing in India to the year 2030.
Recent Related News:
In May 2020, Tata Power announced that its subsidiary Tata Power International Pte Ltd (TPIPL) has acquired a 10% stake in Adjaristsqali Netherlands BV (ABV) from the International Finance Corporation(IFC) for USD 150,000 (about Rs 1.13 crore). The increase in stake has increased TPIPL’s shareholding in ABV to 50%.
About International Finance Corporation (IFC):
It is one of the 5 organizations of the World Bank (WB).
Managing Director– Makhtar Diop
Headquarter– Washington DC, Unite States (US)
