The Housing and Urban Development Corporation Limited (Hudco) has signed a landmark agreement with the Odisha government to extend term loans of up to ₹1 trillion over five years for housing and urban infrastructure projects across the state. According to reports from Business Standard, this represents one of the biggest financial partnerships for urban infrastructure in the eastern region. The agreement will facilitate the planning, development and financing of projects under the Urban Challenge Fund (UCF), the Bhubaneswar-Cuttack-Puri-Paradeep Economic Region (BCPPER) and the Mukhyamantri Sahari Vikas Yojana (MSVY).
As reported by Business Standard, the funding will be structured with both the Centre and the state covering up to 25 per cent each of the project cost, while the remaining 50 per cent will be sourced from the market through municipal bonds or loans. The loans will come with flexible terms, including a moratorium period and repayment tenure of up to 25 years, allowing the state to execute long-gestation infrastructure projects without immediate fiscal pressure. The agreement also permits prepayment by any statutory authority designated by the Odisha government.
According to Business Standard, Hudco will provide extensive technical and institutional support through its UiWIN initiative, assisting the state and urban local bodies in project preparation, technical structuring, preparation of detailed project reports (DPRs), pre-feasibility studies, financial modelling, creation of asset registers and viability gap funding support for bankable infrastructure projects. The corporation will also undertake capacity-building programmes, consultancy services and knowledge-sharing initiatives to strengthen urban governance and improve project execution capabilities of urban local bodies.
As reported by Business Standard, Krushna Chandra Mahapatra, minister for Housing and Urban Development (H&UD) and Public Enterprises, stated that Odisha is progressing towards the goal of becoming a Viksit Odisha by 2036, contributing meaningfully to the national vision of Viksit Bharat 2047. The financial assistance will be released in phases based on project requirements, with the repayment mechanism designed to reduce financial risk for both parties through escrow of revenues generated from projects or ring-fencing other identified revenue sources.
According to Business Standard, the H&UD Department has also signed a tripartite agreement with IIT Bhubaneswar and Development Alternatives to establish the Centre of Excellence (CoE) on low-carbon construction materials and sustainable development. The initiative will promote research, innovation, capacity building and adoption of sustainable construction practices to support Odisha's vision of building cleaner, greener and future-ready cities. The CoE will prepare a comprehensive roadmap for construction and demolition waste management for rapidly urbanising clusters.
