Date: 2nd September, 2026

Memorandum of Understanding Details

Housing and Urban Development Corporation Limited (HUDCO) has signed a Memorandum of Understanding (MoU) with the Government of Bihar on 2nd September, 2026 at Patna, Bihar.

Financial Commitment

  • HUDCO will provide financial assistance to the extent of ₹25,000 Crore (Rupees Twenty-Five Thousand Crore)
  • The financing will be provided over a period of five years
  • Funds will be used for development of industrial infrastructure including acquisition of land for projects

Project Background

  • The Government of Bihar is undertaking development of industrial parks projects across different districts of Bihar
  • Infrastructure Development Authority, Bihar (IDA) has been entrusted with facilitating and implementing infrastructure development initiatives including Industrial Park development
  • The MoU aims to facilitate planning, development and financing of proposed Industrial Parks in Bihar in a time-bound manner

Loan Terms and Conditions

  • Loans shall be availed in tranches by the statutory authority specifically designated by the State Government
  • HUDCO will provide funds on flexible terms and conditions
  • Moratorium period included in the loan structure
  • Flexible repayment schedule up to 25 years
  • Option of prepayment available

Repayment Security

  • Repayment shall be made from escrowing the revenue generated from the project
  • Alternatively, repayment may be secured by ring-fencing of other sources of revenues coming from identified receivables/state budget
  • These mechanisms are designed to ensure timely payments to HUDCO

Operational Framework

  • Separate operational agreements with specified scope of work and terms and conditions shall be executed based on mutually agreed terms between the Parties
  • These agreements will be tailored to the specific requirements of individual projects

MoU Validity

  • The MoU shall remain valid for 3 years from the date of execution (2nd September, 2026)
  • The agreement is subject to annual review

Company Representation

Vikas Goyal, Company Secretary & Compliance Officer, signed the regulatory filing on behalf of HUDCO