HUDCO Signs ₹25,000 Crore MoU with Bihar Government to Fund Industrial Parks
Housing & Urban Development Corporation (HUDCO) has signed a Memorandum of Understanding with the Government of Bihar to provide financial assistance of up to ₹25,000 crore for the development of industrial infrastructure across the state. The MoU was signed on September 2, 2026, in Patna.
Under the agreement, HUDCO will extend term loans in tranches over a period of up to five years. The funds are earmarked for industrial infrastructure development, including land acquisition for proposed industrial parks in various districts of Bihar. The Government of Bihar has designated the Infrastructure Development Authority (IDA) as the statutory authority responsible for facilitating and implementing the identified industrial park and infrastructure projects, including land consolidation and acquisition.
The financing package carries flexible terms, including a moratorium period and a repayment tenure extending up to 25 years, with an option for prepayment. Loan repayments will be secured through an escrow mechanism linked to project revenue, or through ring-fencing of other identified receivables, including state budget allocations.
The MoU is valid for three years from execution, subject to annual review. It represents an intent to undertake the stated activities rather than an immediate disbursement of the full ₹25,000 crore. Separate operational agreements will be executed as individual industrial park projects are identified, with actual loan disbursement dependent on project-specific requirements and the tranches drawn by IDA.
The arrangement positions HUDCO as a financing partner for Bihar's industrial infrastructure push, supporting land acquisition and site development ahead of specific project announcements. Further details on individual industrial park locations, capacities, and disbursement schedules are expected as the state identifies and progresses specific projects under the agreement.