State-owned Housing and Urban Development Corporation (Hudco) has signed a memorandum of understanding (MoU) with the Bihar government to provide term loans of up to **Rs 1 trillion** over the next five years for urban infrastructure projects in the state.
According to a regulatory filing, the proposed financing, equivalent to around **USD 10.5 billion** at current exchange rates, will support a range of urban infrastructure projects, including land acquisition.
The MoU outlines a financing framework to facilitate the planning, development and financing of proposed greenfield satellite cities in Bihar. The projects are to be implemented in accordance with the Bihar government's rules and regulations.
Hudco said the loans will be availed of by statutory authorities designated by the Bihar government for specific projects.
Under the agreement, the financing package includes a moratorium period and a repayment tenure of up to 25 years. Borrowers will also have the option of prepayment.
The MoU states that loan repayments will be made through revenue generated by the projects. It also allows repayment obligations to be backed by ring-fenced revenue streams from identified receivables or allocations from the Bihar government's budget.
The company said separate operational agreements will be executed for individual projects. These agreements will define the scope of work, project-specific requirements and commercial terms based on mutually agreed conditions.
According to Hudco, the MoU will remain valid for three years from the date of execution and will be subject to an annual review by the parties. |
