HUDCO to Provide Up to Rs 1,00,000 Crore in Term Loans for Bihar's Urban Infrastructure Projects
Housing and Urban Development Corporation Limited (HUDCO) signed a Memorandum of Understanding (MoU) with the Government of Bihar on July 3, 2026, in Patna. This agreement is designed to facilitate the planning, development, and financing of proposed Greenfield Satellite Cities across Bihar in a time bound manner, adhering to state government rules and regulations.Under the terms of the MoU, HUDCO commits to provide term loans amounting to Rs 1,00,000 Crore (Rupees One Lakh Crore) over a period of five years. These funds are designated for various urban infrastructure projects, including crucial land acquisition efforts within the state.
The loan structure established in the agreement allows for the borrowing to be availed in tranches by the statutory authority specifically designated by the State Government. HUDCO will provide these funds under flexible terms and conditions. A key aspect of the financial arrangement includes a moratorium period which can extend up to 25 years, offering the option of prepayment.
To ensure timely repayment of the loan, the MoU specifies that repayments must be made either through escrowing revenue generated from the project or by ringfencing other sources of revenues derived from identified receivables or the state budget.
The Memorandum of Understanding sets a timeline for its validity, stating it will remain in effect for three years from the date of execution, subject to an annual review process. The agreement signifies both parties' intent to undertake the defined activities as recorded in the document.
HUDCO Stock Price Movement
Today, shares of Housing & Urban Development Corporation Limited surged in the post-market session, edging higher to settle at ₹215.20 after achieving a 4.05% gain. The stock witnessed robust trading activity today, with a total volume recorded of 7.37 million shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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