HUDCO to provide up to $10.50 billion loan for Bihar infrastructure projects

Housing and Urban Development Corporation (HUDCO) on Friday signed a preliminary agreement with Bihar to provide up to 1 trillion rupees ($10.50 billion) ‌in ⁠loans ⁠for urban infrastructure projects, in one of the country's largest state-level infrastructure financing deals.

The loans will be ​extended to the ⁠eastern state ‌over a five-year ​period. HUDCO will provide ⁠the loan in tranches to the ​statutory authority of Bihar, and ​it will be used for urban infrastructure projects, including land acquisition. The memorandum of understanding also ‌enables HUDCO to plan, develop, and finance greenfield ​satellite ​cities in ⁠the state. The funds will be provided to the state with ​a flexible repayment schedule of up to 25 years.