New Delhi [India], July 12 (ANI): State-owned Housing and Urban Development Corporation Ltd (HUDCO) has signed a memorandum of understanding (MoU) 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)