The Housing and Urban Development Corporation Ltd (HUDCO), a state-owned enterprise, has entered into a memorandum of understanding (MoU) with the Government of Odisha to extend term loans amounting to up to Rs 1 lakh crore over the next five years. The funding is designated for urban infrastructure and housing projects within the state, as disclosed by the company in a stock exchange filing.
MoU Signing and Scope
The MoU was formalized in Bhubaneswar on July 11, with the document dated July 10. It encompasses financing for a broad spectrum of urban infrastructure initiatives. According to the company statement, 'As per the MoU, HUDCO aims to provide term loans to the extent of Rs.1,00,000 Crore... over a period of 5 years, for various Urban infrastructure projects including land acquisition for various Housing and Infrastructure projects under Urban Challenge Fund (UCF), Bhubaneswar-Cuttack-Puri-Paradeep Economic Region (BCPPER) and Mukhyamantri Sahari Vikas Yojana (MSVY) in Odisha.'
Project Support and Implementation
The detailed MoU outlines that the financing will support the planning, development, and implementation of urban infrastructure projects in Odisha in a time-bound manner under the state's policy framework. Beyond financial assistance, HUDCO will also offer project preparation and capacity-building support through its UiWIN initiative. This includes technical structuring, preparation of detailed project reports (DPRs), pre-feasibility studies, financial modelling, viability gap funding (VGF) support for bankable projects, as well as consultancy and training for urban local bodies.
Loan Terms and Validity
Under the agreement, loans will be disbursed in tranches on flexible terms, featuring a moratorium period and a repayment schedule extending up to 25 years. Repayment will be secured by project revenues or other identified revenue sources of the state government and its agencies. The MoU will remain valid for three years, during which separate operational agreements for individual projects will be executed based on mutually agreed terms and project requirements.
