Housing & Urban Development Corporation Limited (HUDCO) has signed a Memorandum of Understanding (MoU) with the Government of Bihar on 3 July 2026 at Patna. HUDCO will provide term loans of up to Rs 1,00,000 crore over a five-year period for urban infrastructure projects, including land acquisition. The MoU supports the planning, development, and financing of proposed Greenfield Satellite Cities in Bihar.
The loan will be availed in tranches by a statutory authority specifically designated by the Bihar government. HUDCO will offer funds on flexible terms, including a moratorium period and a repayment schedule extending up to 25 years, with the option of prepayment.
Loan repayment will be secured through escrowing revenue generated from the projects or by ringfencing other revenue sources from identified receivables or the state budget. This structure is designed to ensure timely repayment to HUDCO.
Separate operational agreements with specified scope of work and terms and conditions will be executed between the parties based on mutually agreed terms. These agreements will address the specific requirements of each project.
The MoU is valid for three years from the execution date, subject to annual review. The agreement records the intent of both parties to undertake the stated activities in a time-bound manner, following the rules and regulations of the state government.
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