Under the MoU, HUDCO will provide financial assistance of up to Rs 25,000 crore over five years for industrial infrastructure development in Bihar. The MoU was signed on 2 September 2026 in Patna.

The funds will be provided as term loans for industrial infrastructure development, including land acquisition for proposed industrial parks.

The Government of Bihar has entrusted the Infrastructure Development Authority (IDA) with facilitating and implementing industrial park and other infrastructure projects across the state.

The loans will be provided in tranches through the statutory authority designated by the state government. HUDCO will offer flexible terms, including a moratorium and repayment period of up to 25 years. The loans will also have an option for prepayment.

Repayment will be made from project-generated revenue or other ring-fenced sources, including identified receivables or the state budget. Separate operational agreements will be signed for individual projects, covering their scope and terms.

The MoU records the intent of both parties and will remain valid for three years from the date of execution, subject to annual review.

Separately, HUDCO said the Government of India has decided to transfer shares held by the Ministry of Rural Development to the Ministry of Housing and Urban Affairs while retaining its overall 75% stake in the company. The decision was conveyed through an Office Memorandum dated 1 September 2026 from DIPAM, with 20.73% currently held through the Ministry of Rural Development and 54.27% through the Ministry of Housing and Urban Affairs.

HUDCO is a premier techno-financing public sector enterprise engaged in the field of housing and infrastructure development in the country. HUDCO was upgraded to a Schedule-A PSE in 2002 and was further conferred the prestigious Navratna status in 2024.

On a consolidated basis, HUDCO's net profit rose 35.05% to Rs 851.11 crore while net sales rose 26.55% to Rs 3717.17 crore in Q1 June 2026 over Q1 June 2025.