HUDCO Bihar has signed an MoU to provide term loans of up to Rs 25,000 crore over five years for the development of industrial infrastructure in the state.
Housing and Urban Development Corporation Limited (HUDCO) has entered into the agreement with the Government of Bihar to support industrial development and infrastructure creation across the state.
HUDCO Bihar Funding to Support Industrial Parks
Under the agreement, HUDCO Bihar funding will support the development of industrial parks across Bihar. The financing will cover areas including land acquisition and enabling infrastructure.
The loans will be provided in tranches to a statutory authority designated by the Bihar government.
Flexible Financing Terms for Bihar Projects
HUDCO will provide flexible financing terms under the agreement. These include a moratorium and a repayment period of up to 25 years.
The financing will also include an option for prepayment. Repayment will be supported by project-generated revenues or other identified revenue sources.
These sources may also include allocations from the state budget.
MoU Valid for Three Years
The MoU will remain valid for three years, subject to an annual review.
Separate operational agreements will be executed for individual projects under the broader framework of the agreement.
HUDCO and Bihar Sign Infrastructure Agreement
The agreement was signed by Kuhdah Kumar, Managing Director, Infrastructure Development Authority, Bihar, and Sanjay Kulshrestha, Chairman and Managing Director, HUDCO.
The agreement is aimed at strengthening industrial infrastructure and supporting the expansion of industrial development across Bihar.
Source: PSU Watch
