The Rupees 1 lakh crore Memorandum of Understanding (MoU) signed between the Gujarat Government and the Housing and Urban Development Corporation Ltd (HUDCO) on June 17, 2026
This funding pipeline is designed to directly support the “Viksit Gujarat 2047 vision by securing long-term capital for greenfield developments and transit networks.
Here is the breakdown of the article’s key details and highlights.
Core Funding Terms
- Total Outlay: Up to ₹1,00,000 crore in long-term financial assistance.
- Timeline: The agreement is valid for a two-year deployment window, commencing retrospectively from May 2026.
- Financing Structure: HUDCO is providing flexible lending terms, which include tailored repayment schedules and moratorium provisions depending on individual project requirements and due diligence.
- Signatories: The MoU was executed in Gandhinagar by HUDCO’s Chairman and Managing Director Sanjay Kulshrestha and Gujarat’s Finance Department, in the presence of Chief Minister Bhupendra Patel.
Targeted Infrastructure Projects
The financing provides a broad funding envelope rather than just single-project loans. The primary capital beneficiaries include:
- Dholera Smart City: Direct capital injection for the creation of “world-class modern infrastructure” within the greenfield region. This long-term financial stability is a critical driver for advancing major commercial zones, Town Planning scheme utilities, and industrial land allotments.
- Transit and Connectivity: Expressway development and the expansion of the Ahmedabad Metro Rail (specifically Phases 2 and 3).
- Public Amenities: Large-scale sports infrastructure and broader urban development initiatives.
Strategic Project Implementation (IIM-A Partnership)
To ensure these massive funds are deployed efficiently, the state government simultaneously signed a parallel MoU with IIM Ahmedabad.
Under this secondary agreement, IIM Ahmedabad will conduct pre-feasibility studies, feasibility assessments, prepare Detailed Project Reports (DPRs), and run impact evaluations for the projects funded under the Viksit Gujarat 2047 initiative.
Key takeaway: For large-scale development and commercial construction, this pact ensures that core connectivity (expressways and metro lines) and foundational utilities in high-growth regions like Dholera have secured capital backing for the next two years, significantly reducing the risk of infrastructure delays.