New Delhi: State-owned Housing and Urban Development Corporation (HUDCO) has signed a Memorandum of Understanding (MoU) with the Government of Odisha to provide term loans of up to Rs 1 lakh crore over the next five years for urban infrastructure and housing projects in the state.
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The MoU was signed in Bhubaneswar on July 11 and aims to facilitate financing for projects under the Urban Challenge Fund (UCF), the Bhubaneswar-Cuttack-Puri-Paradeep Economic Region (BCPPER) and the Mukhyamantri Sahari Vikas Yojana (MSVY). The funding will also cover land acquisition for various housing and infrastructure projects.
Under the agreement, HUDCO will extend loans in tranches on flexible terms, including a moratorium period and a repayment tenure of up to 25 years. The loans may be prepaid by statutory authorities designated by the Odisha government. Repayment will be secured through escrow of project revenues or other identified state revenue streams.
Apart from financing, HUDCO will provide project preparation and capacity-building support through its UiWIN initiative. This includes technical structuring, preparation of detailed project reports (DPRs), pre-feasibility studies, asset register creation, financial modelling, viability gap funding (VGF) support for bankable projects, consultancy services and training programmes for urban local bodies.
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The corporation said separate operational agreements detailing the scope of work and project-specific terms will be executed based on mutual agreement between the two parties. The MoU will remain valid for three years from the date of execution, subject to annual review.
The agreement was signed by Odisha Additional Chief Secretary Usha Padhee on behalf of the state Government and HUDCO Chairman and Managing Director Sanjay Kulshrestha on behalf of the corporation.
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