Bihar Signs ₹1 Lakh Crore HUDCO Deal for 12 New Townships

In a landmark move aimed at accelerating urbanisation and economic growth, the Bihar government on Friday signed a Memorandum of Understanding (MoU) with the Housing and Urban Development Corporation Ltd (HUDCO) for the development of 12 greenfield satellite townships across the state. Backed by ₹1 lakh crore in long-term financing , the ambitious project is being seen as one of the largest urban infrastructure initiatives ever undertaken in Bihar.

The agreement was signed between Urban Development and Housing Department Principal Secretary Vinay Kumar and HUDCO Chairman and Managing Director Sanjay Kulshrestha in the presence of Chief Minister Samrat Choudhary . Describing the pact as a “historic step” , the Chief Minister said it would lay the foundation for a new era of planned urban development and position Bihar as a major investment destination in eastern India.

The proposed townships will be developed around key urban centres including Patna, Gaya, Darbhanga, Bhagalpur, Muzaffarpur, Saharsa, Rohtas and Purnea . Spread across more than three lakh acres , the projects are intended to function as self-sustaining urban hubs equipped with modern housing, commercial zones, educational institutions, healthcare facilities and world-class civic infrastructure.

Officials said the initiative is part of Bihar’s broader strategy to promote planned urbanisation and increase the state’s urban population share, which remains below the national average. The satellite townships are expected to reduce pressure on existing cities while creating new centres of economic activity and employment.

A key feature of the programme is the land-pooling model , under which farmers will become stakeholders in the development process instead of merely surrendering land. The government has assured that landowners opting for compensation will receive payments within 30 days , while others may benefit from the future appreciation of developed land.

The project is expected to generate lakhs of direct and indirect jobs , boost construction and real-estate activity, and attract substantial private-sector participation. Government estimates suggest the initiative could eventually draw nearly ₹6 lakh crore in additional private and institutional investments , creating a significant multiplier effect on the state economy.

The townships will feature smart road networks, drinking water systems, sewerage infrastructure, reliable power supply, green spaces, parks, schools, universities, hospitals, commercial centres and social infrastructure . Officials believe the development model could replicate the success of satellite cities such as Noida, Gurugram and Navi Mumbai , helping Bihar emerge as a hub for modern, sustainable and investment-driven urban growth.

With long-term financing, integrated planning and farmer participation at its core, the Bihar-HUDCO partnership is expected to redefine the state’s urban landscape and support its development aspirations for decades to come.