Patna: The Bihar government on Friday signed a Rs 1 lakh crore financing agreement with the Housing and Urban Development Corporation Limited (HUDCO) to develop 12 greenfield satellite townships, marking one of the state’s largest urban development initiatives to date.
The memorandum of understanding (MoU) was exchanged in Patna in the presence of Chief Minister Samrat Choudhary. The agreement was signed between the Urban Development and Housing Department and HUDCO, with Principal Secretary Vinay Kumar and HUDCO Chairman and Managing Director Sanjay Kulshrestha exchanging the documents.
Government Eyes Planned Urban Expansion
Addressing the event, Samrat Choudhary described the agreement as a milestone in Bihar’s urban development, saying the proposed townships would provide planned housing, modern civic infrastructure and improved living standards.
According to the government, the satellite townships will be developed over more than 3 lakh acres and are intended to accommodate future urban growth through planned expansion.
The Chief Minister said the state aims to increase Bihar’s urbanisation level to 35%, describing the project as part of a broader strategy for balanced and inclusive urban development.
Rs 6 Lakh Crore Additional Investment Expected
The government said the Rs 1 lakh crore long-term financing from HUDCO would be complemented by an estimated Rs 6 lakh crore in additional investment from private and institutional sources during the development of the townships.
Officials said the project is expected to generate large-scale economic activity through construction, infrastructure development and associated industries, while creating employment and self-employment opportunities.
The proposed townships are expected to include road networks, drinking water supply, sewerage systems, electricity infrastructure, green spaces, and facilities for education, healthcare, commerce and other civic services.
Land Pooling Model Planned
The Chief Minister said the government intends to develop the townships through a land pooling model, under which participating landowners will become stakeholders in the project.
He added that farmers opting for compensation would receive payments within 30 days of applying.
Officials Attend Signing Ceremony
The event was attended by Deputy Chief Minister Bijendra Prasad Yadav, Urban Development and Housing Minister Nitish Mishra, Chief Secretary Pratyaya Amrit, Principal Secretary to the Chief Minister Deepak Kumar, Urban Development and Housing Department Principal Secretary Vinay Kumar, HUDCO Chairman and Managing Director Sanjay Kulshrestha, and senior officials from the state government and HUDCO.
The Bihar government said the agreement represents a long-term partnership aimed at strengthening urban infrastructure and supporting the state’s future economic and demographic growth.
