Patna, July 3 (APAC Media): Housing and Urban Development Corporation Limited (HUDCO) has signed a Memorandum of Understanding (MoU) with the Bihar Government to provide term loans of up to Rs 1 lakh crore for large-scale urban infrastructure projects across the state.
The funding will support the development of 12 greenfield satellite townships, along with land acquisition and other urban development initiatives aimed at promoting planned and sustainable urbanisation.
Focus on Greenfield Townships
The proposed satellite townships are intended to ease pressure on existing urban centres while encouraging balanced regional development.
The projects will include modern residential areas, employment hubs, planned urban layouts, and integrated civic infrastructure to support long-term urban growth.
Modern Civic Infrastructure
The initiative will finance the development of essential urban infrastructure, including road networks, water supply systems, sewage and drainage facilities, green spaces, educational institutions, healthcare infrastructure, and other public amenities.
Officials said the projects are expected to contribute to the creation of sustainable and future-ready urban centres across Bihar.
Flexible Financing Model
Under the agreement, HUDCO will extend financial assistance through a long-term lending structure with a repayment period of up to 25 years. The funding will be released in phases and will include provisions for a moratorium as well as prepayment.
The flexible financing model is expected to reduce the state’s financial burden while supporting large-scale infrastructure development.
Revenue-Backed Repayment
According to the agreement, loan repayment will be secured through mechanisms such as escrow of project revenues, ringfenced revenue streams, and state budgetary support.
The funds will be channelled through a statutory authority designated by the Bihar Government to ensure transparency and efficient implementation of the projects.
Also Read:
Gujarat Rolls Out Namo Swachhta and Amrutpan Drives





































