HUDCO Signs ₹1,00,000 Crore MoU with Gujarat Government to Fund Infrastructure Projects
New Delhi: In a major boost to Gujarat's infrastructure and economic development, Housing and Urban Development Corporation Limited (HUDCO) has signed a Memorandum of Understanding (MoU) with the Government of Gujarat to provide financial assistance of up to ₹1 lakh crore over the next two years.
The agreement was signed on June 17, 2026, in Gandhinagar and aims to accelerate the development of key infrastructure projects across the state.
Strategic Partnership for Economic Growth
According to the agreement, HUDCO will extend funding support to identified infrastructure projects in Gujarat in accordance with its prevailing guidelines and lending norms. The financing initiative is expected to contribute significantly to the state's economic growth and facilitate large-scale infrastructure creation.
The MoU was signed between the Finance Department of the Government of Gujarat and HUDCO. Sandeep Kumar, IAS, Secretary (Economic Affairs), represented the state government, while HUDCO Chairman and Managing Director Sanjay Kulshrestha signed on behalf of the public sector lender.
Flexible Financing Terms
HUDCO stated that it would offer funds on flexible terms and conditions, including a moratorium period and customized repayment schedules. The company said the arrangement has been designed to ensure time-bound financing of infrastructure projects in line with state government rules and regulations.
The Government of Gujarat will also facilitate HUDCO in obtaining the necessary approvals, permissions, registrations and clearances from relevant state departments as per existing policies.
Two-Year Validity
The Memorandum of Understanding will remain valid for two years, commencing from May 2026. During this period, HUDCO aims to support multiple infrastructure sectors and strengthen Gujarat's development ecosystem.
Strengthening Gujarat's Infrastructure Vision
The proposed ₹1 lakh crore funding commitment underscores Gujarat's focus on expanding infrastructure capacity and attracting long-term investments. Analysts believe the partnership could support projects related to urban development, transportation, water supply, housing and other critical sectors, thereby enhancing the state's growth prospects.
About HUDCO
Housing and Urban Development Corporation Limited (HUDCO) is a government-owned financial institution that provides long-term finance for housing and infrastructure projects across India. The company is listed on both the BSE and the National Stock Exchange under the ticker symbol "HUDCO."