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 ₹1 lakh crore over the next five years for urban infrastructure and housing development projects in the state.
The agreement aims to strengthen financing support for major urban development initiatives and accelerate housing and infrastructure growth across Odisha.
The MoU was signed in Bhubaneswar on July 11, 2026.
Funding to Support UCF, BCPPER and MSVY Projects
Under the agreement, HUDCO will provide financial assistance for several key urban development programmes, including:
- Urban Challenge Fund (UCF)
- Bhubaneswar-Cuttack-Puri-Paradeep Economic Region (BCPPER)
- Mukhyamantri Sahari Vikas Yojana (MSVY)
The funding support will also include land acquisition requirements for various housing and infrastructure projects across the state.
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Flexible Loan Terms for Odisha Infrastructure Projects
HUDCO will provide loans in multiple tranches with flexible financing conditions.
The loan structure includes:
- Moratorium period facility
- Repayment tenure of up to 25 years
- Prepayment options for statutory authorities designated by the Odisha government
Loan repayment will be secured through an escrow mechanism involving project revenues or other identified state revenue sources.
HUDCO to Provide Technical and Capacity-Building Support
Apart from financial assistance, HUDCO will extend project development and capacity-building support through its UiWIN initiative.
The support will include:
- Technical project 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
- Training programmes for Urban Local Bodies (ULBs)
This support aims to improve project planning, implementation efficiency, and financial sustainability.
Separate Agreements for Individual Projects
HUDCO and the Odisha government will execute separate operational agreements for specific projects based on mutual discussions.
These agreements will define the scope of work, implementation framework, and project-specific terms.
The MoU will remain valid for three years from the date of execution, with provisions for annual review.
MoU Signed by HUDCO CMD and Odisha Government Official
The agreement was signed by:
- Usha Padhee, Additional Chief Secretary, Government of Odisha, on behalf of the state government
- Sanjay Kulshrestha, Chairman and Managing Director, HUDCO, on behalf of the corporation
The partnership is expected to provide significant momentum to Odisha’s urban infrastructure expansion and affordable housing development.
About HUDCO
Housing and Urban Development Corporation (HUDCO) is a Government of India enterprise under the Ministry of Housing and Urban Affairs. Established in 1970, HUDCO provides financial assistance for housing, urban infrastructure, and development projects across India, supporting affordable housing, urban planning, and sustainable city development.
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