Kerala Approves ₹1,500 Crore HUDCO Loan for Life Mission Scheme

Quick Summary:

• The Kerala Cabinet approved a loan of ₹1,500 crore from Housing and Urban Development Corporation Limited (HUDCO) for the LIFE Mission housing scheme.

– ₹1,100 crore allocated for loan assistance to construct 1,27,601 houses.
– ₹400 crore dedicated to aiding scheduled caste (SC) and scheduled tribe (ST) families in the LIFE list.

• Loan will be sourced via Kerala Urban Development Finance Corporation (KUDFC). half will be disbursed this fiscal year; remaining half in 2026-27.
• Repayment: Over a 15-year period with deductions from local self-government development funds; interest covered by the State Budget.
• Cabinet announced an ‘Onam gift’ of ₹1,000 each for more than 50,000 ST senior citizens above the age of 60 (excluding pensioners working in government/quasi-government). Total expenditure: ₹5.28 crore from Chief Minister’s Distress Relief fund.
• Guidelines for employee bonuses in public sector institutions were discussed by the Cabinet.

Indian Opinion Analysis:
The Kerala government’s effort to secure financing through HUDCO reflects it’s commitment toward addressing housing challenges faced by economically weaker sections under LIFE Mission-a flagship welfare scheme aimed at providing affordable housing solutions. By earmarking specific funds for SC/ST communities and utilizing KUDFC as a mechanism to facilitate funding distribution across fiscal years,there is a clear strategy to ensure structured loan disbursement while maintaining long-term financial accountability through gradual repayments tied to local development fund mechanisms.

Additionally, prioritizing financial assistance such as Onam gifts targets vulnerable groups like senior citizens within ST communities-a move that showcases sensitivity towards inclusiveness during festivals and economic hardships alike. The issuance of public-sector bonus guidelines could further enhance organized workforce welfare but merits detailed scrutiny over implementation scope.these measures highlight efforts toward equitable resource allocation yet underscore dependency on external loans amid budgetary constraints-an area requiring prudent management moving forward.

read more: Original article