HUDCO shares jump 4% after signing Rs 25,000 crore MoU with Bihar government for infrastructure development

Shares of Housing and Urban Development Corporation (HUDCO) jumped nearly 4% on Thursday to a day’s high of Rs 184.69 on the NSE after the company signed a Memorandum of Understanding (MoU) with the Government of Bihar to provide financial assistance of up to Rs 25,000 crore.

According to an exchange filing on Wednesday, the company said the MoU is aimed at providing financial assistance over a period of five years for the development of industrial infrastructure, including land acquisition for projects.

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Under the MoU, the Government of Bihar is undertaking the development of industrial park projects across different districts of the state, for which it requires timely availability of land.

The Infrastructure Development Authority, Bihar (IDA), has been entrusted by the Government of Bihar with facilitating and/or implementing identified infrastructure development initiatives, including the development of industrial parks in the state. To fulfil these responsibilities, it may be required to undertake the acquisition, purchase, consolidation or development of land, as well as the development of enabling infrastructure for industrial park projects.

The MoU is aimed at facilitating HUDCO in the planning, development and financing of the proposed industrial parks in Bihar in a time-bound manner, in accordance with the rules and regulations of the state government.
The loan shall be availed in tranches by the statutory authority specifically designated by the state government. HUDCO shall provide funds on flexible terms and conditions, including a moratorium period and a flexible repayment schedule of up to 25 years, with an option for prepayment.The loan to HUDCO shall be repaid by escrowing revenue generated from the projects or by ring-fencing other sources of revenue from identified receivables or the state budget.

The MoU shall remain valid for three years from the date of execution, subject to annual review.

In July 2026, HUDCO signed another MoU with the Government of Bihar, aimed at providing term loans of up to Rs 1 lakh crore over a period of five years for various urban infrastructure projects, including land acquisition.

The MoU was aimed at facilitating HUDCO in the planning, development and financing of the proposed Greenfield Satellite Cities in Bihar in a time-bound manner, in accordance with the rules and regulations of the state government.

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Under this MoU, HUDCO shall provide funds on flexible terms and conditions, including a moratorium period and a flexible repayment schedule of up to 25 years, with an option for prepayment.

So far in 2026, the stock has declined 19.68% and is down nearly 15.54% over the last one year. The stock has gained 139% over the last three years and 321% over the last five years.

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