HUDCO Enters MoU with Chhattisgarh Govt to Explore Up to ₹1 Lakh Crore Funding Over 5 Years

State-owned Housing and Urban Development Corporation Ltd (HUDCO) has entered into a non-binding memorandum of understanding with the Chhattisgarh government to potentially support large-scale housing and infrastructure development in the state over the next five years, as per the news report. 

Scope and Structure of the MoU 

The MoU, signed on January 7, 2026, at Nava Raipur, outlines an in-principle framework under which HUDCO may provide debt funding of up to ₹1,00,000 crore until FY2030.  

Financial assistance may be extended to financially independent agencies under the control of the Chhattisgarh government for housing, core and non-core infrastructure, power, and renewable energy projects. Agencies intend to draw up to ₹20,000 crore annually, aggregating to ₹1,00,000 crore over 5 years. 

The proposed sector-wise allocation earmarks ₹10,000 crore for housing projects and ₹70,000 crore for core and non-core infrastructure, including water supply, sewerage, drainage, roads, electricity, smart cities, metro projects, airports, industrial parks, social and commercial infrastructure, educational institutions, hospitals, logistics hubs, IT infrastructure, civil aviation, mining institutions, and rural infrastructure.  

Power projects and renewable as well as other projects are allotted ₹10,000 crore each. 

Terms, Conditions and Validity 

HUDCO will consider term loans on a project-by-project basis, subject to its prevailing lending policies, due diligence, adequate security, and individual sanctions.  

The MoU does not create binding obligations, and the Chhattisgarh government does not directly guarantee repayment, though it may issue guarantees in line with its policy. 

Borrowing agencies may also seek funding from other lenders if better terms are available. The arrangement remains valid up to FY2030, may be terminated with 30 days’ notice by either party, and disputes will be resolved through mutual discussions or the applicable CPSE dispute resolution mechanism. 

Read More: HUDCO Share Price in Focus; To Raise ₹2,500 Crore Through NCD Issue! 

HUDCO Share Price Performance  

As of January 8, 2026, at 10:10 AM, HUDCO share price is trading at ₹224.35 per share, reflecting a decline of 1.13% from the previous closing price.  

Conclusion  

The MoU outlines a broad financing framework for Chhattisgarh’s development plans without creating binding obligations. Funding will depend on project-wise approvals, HUDCO’s lending norms, and security availability. Agencies may seek alternative lenders, while government guarantees remain discretionary, keeping flexibility for both parties. 

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