HUDCO has signed a comprehensive Memorandum of Understanding with the Chhattisgarh government on January 7, 2026, establishing a framework to provide financial assistance up to ₹1 lakh crore over the next five years. The non-binding MoU was executed at Nava Raipur, Chhattisgarh, marking a significant partnership for the state's housing and infrastructure development initiatives.

MoU Framework and Structure

The agreement creates a substantial financial framework allowing HUDCO to provide up to ₹20,000.00 crore per year for the next five years, aggregating to ₹1,00,000.00 crore by FY 2030. The MoU was signed by Shri Daljeet Singh Khatri, Director Finance at HUDCO, and Shri Mukesh Bansal, IAS, Secretary Finance, Government of Chhattisgarh.

Sector-wise Funding Allocation

The MoU outlines specific sector-wise allocation of the ₹1 lakh crore funding commitment. Infrastructure projects receive the largest allocation at ₹70,000.00 crore, covering both 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.

Terms and Conditions

HUDCO will provide term loans to financially independent agencies under the Chhattisgarh government, subject to the company's prevailing lending policies, due diligence requirements, and availability of adequate loan security. Each project will undergo individual evaluation and approval based on mutually agreed terms and conditions decided on a case-by-case basis.

The Chhattisgarh government does not directly commit to repayment of loans sanctioned by HUDCO, though it may consider issuing government guarantees for projects as per its policy. Agencies retain the flexibility to raise funds from other lenders if better terms are available elsewhere.

Agreement Validity and Market Response

The MoU remains valid until FY 2030 and can be extended through mutual consent. Either party may terminate the agreement with a 30-day notice, and any disputes will be resolved through mutual discussions or under the Administrative Mechanism for Resolution of CPSEs Disputes.

This strategic partnership establishes HUDCO as a key financial partner for Chhattisgarh's development agenda while providing the state government access to substantial funding for critical infrastructure and housing projects over the next five years.

Housing and Urban Development Corporation has delivered robust performance in the third quarter of FY 2025-26, with provisional loan sanctions reaching ₹46,167.32 crore and disbursements of ₹15,508.25 crore. The state-run housing finance company's strong quarterly results contribute to impressive nine-month figures, demonstrating sustained growth in urban development financing.

Quarterly and Nine-Month Performance

HUDCO's financial performance for Q3 FY 2025-26 and nine-month period shows significant business traction:

The company reported that all figures are provisional and subject to audit, with the nine-month loan sanctions touching ₹1.39 lakh crore on a provisional basis.

Strategic Partnership with NIUA

HUDCO has strengthened its institutional capabilities by signing a memorandum of understanding with the National Institute of Urban Affairs (NIUA). The non-binding agreement focuses on enhancing cooperation in urban infrastructure and development initiatives.

The partnership aims to explore collaborations with multilateral funding agencies and other financing options to support future urban projects.

Business Operations Overview

As a specialized financial institution, HUDCO continues to play a crucial role in supporting housing and urban development projects across the country. The substantial loan sanctions and disbursements demonstrate the company's active participation in financing infrastructure growth and housing sector advancement, reinforcing its position in the urban development financing landscape.