HUDCO Expands Industrial Infrastructure Funding in Bihar
HUDCO has signed an MoU with the Bihar government to provide long-term financing of up to ₹25,000 crore over five years for industrial infrastructure projects, primarily covering industrial parks, land acquisition and supporting infrastructure required to make sites ready for industrial use.
The funding will be provided through term loans in tranches to a statutory authority designated by the state government, with individual projects governed by separate agreements detailing their scope and financing terms. The loans can have a tenure of up to 25 years, with provisions for moratoriums, flexible repayment schedules and early repayment.
Bihar’s Infrastructure Development Authority will facilitate or implement the identified projects, including land acquisition, consolidation, development and construction of supporting infrastructure. Repayments may be serviced through project-generated revenues, other identified government receivables or the state budget.
Importantly, the ₹25,000 crore represents a financing commitment and not an immediate disbursement, with funds expected to be drawn over five years based on project requirements and agreements. The MoU will remain valid for three years and will be reviewed annually, providing a framework for financing-led development of industrial infrastructure across Bihar.