Housing and Urban Development Corporation Limited (HUDCO) has entered into a Memorandum of Understanding (MoU) with the Government of Bihar. Under this agreement, HUDCO will provide financial assistance up to ₹25,000 Crore over five years for the development of industrial infrastructure, including land acquisition. The MoU aims to accelerate the planning, development, and financing of proposed industrial parks in Bihar, with flexible loan terms and repayment options.
HUDCO Partners with Bihar Government for Industrial Growth
Housing and Urban Development Corporation Limited (HUDCO) has announced the signing of a Memorandum of Understanding (MoU) with the Government of Bihar on September 2, 2026. This significant agreement outlines HUDCO’s commitment to providing substantial financial support for the development of industrial infrastructure across Bihar.
Financial Commitment and Project Scope
As per the terms of the MoU, HUDCO will extend term loans amounting to ₹25,000 Crore (Rupees Twenty-Five Thousand Crore) over a period of five years. This financial assistance is earmarked for the development of industrial infrastructure, which includes the crucial aspect of land acquisition for various projects. The primary objective is to facilitate the planning, development, and financing of proposed Industrial Parks in Bihar in a time-bound manner, aligning with the State Government’s regulations.
Flexible Financing and Repayment
HUDCO has committed to providing these funds on flexible terms and conditions. This includes the provision of a moratorium period and a flexible repayment schedule that can extend up to 25 years, with an option for prepayment. The repayment of the loan is structured to be made from the revenue generated by the projects themselves or through ring-fencing of other identified receivables or state budget allocations, ensuring timely payments to HUDCO.
Strategic Importance
The Government of Bihar is actively undertaking the development of industrial parks across its districts, requiring timely access to land and robust infrastructure. The Infrastructure Development Authority, Bihar (IDA), has been designated to facilitate these initiatives, including acquisition and development of land. This MoU is poised to significantly boost industrial development and economic growth in Bihar, leveraging HUDCO’s expertise in financing urban and housing infrastructure.
The signed MoU will remain valid for 3 years from the date of execution, subject to annual review.
Source: BSE
