IFC and HDFC Ltd partner to boost affordable green housing projects

HDFC | Representative image

World Bank Group's investment arm International Finance Corporation (IFC) has approved a loan of $250 million to HDFC Ltd for green housing projects.

IFC has said that partnership with HDFC Ltd would help change perceptions about the green housing which is considered as a luxury market in the country. The World Bank Group arm said at least 25 percent of the funding would be used for green affordable housing.

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"IFC’s $250 million loan to HDFC Ltd will support its moves to grow its affordable housing and emerging green affordable housing portfolio by improving access to such housing for people on lower incomes. Aligned with the government of India’s goal to provide ‘Housing for All,’ the funding will also help generate jobs," Business Standard quoted the two sides' joint statement.

Meanwhile, HDFC's MD Renu Sud Karnad said that with green affordable housing, the firm is aiming to help India deliver on its commitments under the Paris Agreement and reduce a third of its carbon emissions by 2030 from 2005 levels.

"Green and energy-efficient housing can help cut emissions, as residential housing accounts for about 24 percent of the nation’s electricity consumption. This partnership with HDFC offers multiple benefits for India, as it can play a leading role in developing the country’s nascent green affordable housing market while delivering jobs and a climate dividend," the business daily quoted Karnad as saying.