State-owned Housing and Urban Development Corporation Ltd (HUDCO) on Wednesday (January 7) said it has signed a memorandum of understanding with the government of Chhattisgarh to provide financial assistance of up to ₹1,00,000 crore over the next five years for housing and infrastructure projects in the state.
The non-binding MoU was signed on January 7, 2026, at Nava Raipur, Chhattisgarh. Under the agreement, HUDCO may extend debt funding to financially independent agencies under the control of the Chhattisgarh government for execution of various housing, core infrastructure, non-core infrastructure, power, and renewable energy projects during the period up to FY2030.
As per the MoU, agencies of the Chhattisgarh government intend to avail financial assistance of up to ₹20,000 crore per year, aggregating to ₹1,00,000 crore over five years.
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HUDCO will consider providing term loans for eligible projects, subject to its prevailing lending policies, due diligence, availability of adequate loan security, and individual project sanctions. The terms and conditions of each loan will be decided on a case-by-case basis between HUDCO and the borrowing agencies.
The indicative sector-wise allocation includes ₹10,000 crore for housing projects, ₹70,000 crore for core and non-core infrastructure such as water supply, sewerage, drainage, roads, electricity, smart cities, metro projects, airports, industrial parks, social and commercial infrastructure, educational institutions, hospitals, logistics hubs, IT infrastructure, civil aviation, mining institutions, and rural infrastructure. Power projects and renewable and other projects are earmarked ₹10,000 crore each.
HUDCO stated that the MoU is an in-principle arrangement and does not create any binding obligation on either party. The Chhattisgarh government does not directly commit to repayment of loans sanctioned by HUDCO, though it may consider issuing government guarantees for projects as per its policy. Agencies are also free to raise funds from other lenders if better terms are available.
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The MoU will remain valid up to FY2030, unless extended by mutual consent, and may be terminated by either party with a 30-day notice. Any disputes arising will be resolved through mutual discussions or under the Administrative Mechanism for Resolution of CPSEs Disputes, as applicable.
Shares of Housing & Urban Development Corporation Ltd ended at ₹226.80, up by ₹1.97, or 0.88%, on the BSE today, January 7.
