HUDCO signs MoU with Odisha govt to provide Rs 1 lakh crore in term loan for urban infrastructure projects
New Delhi, July 12
State-owned Housing and Urban Development Corporation Ltd has signed a memorandum of understanding 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, the company said in a stock exchange filing.
The MoU was signed in Bhubaneswar on July 11 (dated July 10) and covers financing for a range of urban infrastructure projects.
"As per the MoU, HUDCO aims to provide term loans to the extent of Rs.1,00,000 Crore... over a period of 5 years, for various Urban infrastructure projects including land acquisition for various Housing and Infrastructure projects under Urban Challenge Fund (UCF), Bhubaneswar-Cuttack-Puri-Paradeep Economic Region (BCPPER) and Mukhyamantri Sahari Vikas Yojana (MSVY) in Odisha," the company said.
The detailed MoU states that the financing will support the planning, development and implementation of urban infrastructure projects in Odisha in a time-bound manner under the state's policy framework.
Apart from extending financial assistance, HUDCO will also provide project preparation and capacity-building support through its UiWIN initiative. This includes assistance in technical structuring, preparation of detailed project reports (DPRs), pre-feasibility studies, financial modelling, viability gap funding (VGF) support for bankable projects, as well as consultancy and training for urban local bodies.
According to the agreement, the loans will be disbursed in tranches on flexible terms, including a moratorium period and a repayment schedule of up to 25 years. Repayment will be backed by project revenues or other identified revenue sources of the state government and its agencies.
The MoU will remain valid for three years, during which separate operational agreements for individual projects will be executed based on mutually agreed terms and project requirements.
— ANI
Reader Comments
As someone from Bhubaneswar, I'm cautiously optimistic. The BCPPER corridor linking Puri and Cuttack could really boost tourism and economic growth. But 25-year repayment terms sound like a long rope - hope the revenue projections are realistic, not just on paper.
Great initiative but the real test will be execution. HUDCO's UiWIN support for DPRs and VGF is good, but many states have struggled with timely disbursement and project completion. Odisha needs to streamline approvals and avoid cost overruns. Fingers crossed! 🤞
Finally, some focus on urban infrastructure in tier-2 and tier-3 cities! The Mukhyamantri Sahari Vikas Yojana could transform smaller towns if implemented properly. Just hope the benefits reach the common man, not just builders and contractors. Transparency is key! 💪
Rs 1 lakh crore is a massive amount! The focus on land acquisition for housing and the Urban Challenge Fund is smart - but land acquisition in Odisha can be tricky, especially in rural-urban fringes. Need proper rehabilitation policies, otherwise it'll lead to delays and legal battles.
This is wonderful news for Odisha's growth! The 25-year repayment with moratorium period is very flexible. I just wish the article mentioned more about how this will benefit ordinary citizens - like better water supply, sanitation, and affordable housing. Hope execution is faster than usual! 😊
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