Patna: Bihar’s industrial infrastructure is set for a major financial boost after the Housing and Urban Development Corporation (HUDCO) signed a Rs 25,000 crore funding agreement with the state government.
The MoU will facilitate financing for industrial parks and projects related to land acquisition, purchase, consolidation and development across Bihar. The move is expected to strengthen industrial infrastructure and support the development of new investment and employment opportunities in the state.
The agreement also gave a boost to HUDCO shares. On Thursday, the company’s stock gained nearly 4% on the NSE and touched a day high of Rs 184.69 following the announcement.
Five-Year Agreement to Support Industrial Infrastructure
According to HUDCO’s exchange filing, the agreement aims to provide financial assistance for industrial infrastructure projects in Bihar over a period of five years.
The funding will cover requirements related to acquiring, purchasing, consolidating and developing land for industrial projects. The Bihar government is developing industrial parks in different districts, making timely availability of land a key requirement.
IDA Given Key Role in Land Development
The Bihar government has assigned the Infrastructure Development Authority, Bihar (IDA), the responsibility of facilitating and implementing various infrastructure development initiatives.
IDA will undertake or facilitate the acquisition, purchase, consolidation and development of land required for industrial parks. It will also be responsible for supporting infrastructure linked to these projects.
The arrangement is aimed at ensuring that industrial park projects receive the required land and supporting infrastructure in a timely manner.
HUDCO to Offer Loans on Flexible Terms
Under the MoU, HUDCO will support the planning, development and financing of proposed industrial parks in accordance with Bihar government rules and regulations.
A statutory authority designated by the state government will be able to avail loans from HUDCO in phases. The financing will come with flexible terms, including a moratorium period, a repayment period of up to 25 years and an option for early repayment.
The repayment of loans will be secured through project revenues deposited in escrow accounts. Identified receipts and other revenue sources from the state budget may also be ring-fenced for repayment.
The agreement will remain effective for three years from the date of signing and will be reviewed annually.
Bihar Already Has Rs 1 Lakh Crore HUDCO Urban Infrastructure Plan
The latest agreement follows another major MoU signed between HUDCO and the Bihar government in July 2026.
Under that agreement, HUDCO proposed providing term loans of up to Rs 1 lakh crore over five years for various urban infrastructure projects in Bihar.
The earlier agreement included funding requirements related to land acquisition and focused significantly on the planning, development and financing of proposed greenfield satellite cities.
With the two agreements, HUDCO has outlined substantial financial support for Bihar’s industrial and urban infrastructure, with land development, industrial parks and new urban centres emerging as major areas of focus.
