Bihar Government Signs ₹1 Lakh Crore HUDCO MoU to Fund 12 Satellite Townships

What Was Signed and Why

The Bihar government and the Housing and Urban Development Corporation Ltd (HUDCO) on Friday signed a Memorandum of Understanding to develop 12 greenfield satellite townships in the state. The agreement was signed between Urban Development and Housing Department Principal Secretary Vinay Kumar, and HUDCO Chairman and MD Sanjay Kulshrestha, in the presence of Chief Minister Samrat Choudhary here.

Calling it a "historic step", Choudhary said the pact with HUDCO for long-term financing of Rs 1 lakh crore would pave the way for the development of 12 greenfield satellite townships in Bihar.

The 12 Townships: Names and Locations

These lands have been selected in the vicinity of existing major cities and towns in Bihar—Patna, Muzaffarpur, Darbhanga, Chapra, Gaya, Sitamarhi, Saharsa, Purnea, Munger, Bhagalpur, and Sonepur. The satellite townships will be developed around key cities, with each assigned a new identity — including Patliputra (Patna), Hariharnathpuram (Sonepur), Magadh (Gaya), Mithila (Darbhanga), Koshi (Saharsa), Purnia, Ang (Munger), Vikramshila (Bhagalpur), Tirhut (Muzaffarpur), Saran (Chapra) and Sitapuram (Sitamarhi).

Pataliputra: The Flagship Project

The proposed Pataliputra Township will cover around 81,730 acres under its "special zone", with an additional 1,010 acres identified as the core development area where initial infrastructure will be built. The project is designed as a modern urban hub, incorporating key facilities such as a Fintech City, Sports City, logistics hub and a judicial academy.

Infrastructure and Services Planned

The greenfield satellite townships will be equipped with modern road networks, drinking water supply, sewerage systems, electricity, green spaces, educational and healthcare institutions, as well as commercial and social infrastructure, officials said.

The initiative includes theme-based development: Pataliputra (Patna) as Education City, Hariharnathpuram (Sonepur) as Aero City, Magadh (Gaya) as Religious and Cultural Hub, Mithila (Darbhanga) as Medical Hub, Tirhut (Muzaffarpur) as Industrial Hub, and Sitapuram (Sitamarhi) as Religious and Cultural Tourism Centre.

Land Acquisition and Farmer Protection

Farmers will also be made stakeholders in the project through the land-pooling model. The government will return 55 per cent of land to the landowners/farmers after developing them. Those applying for compensation will receive payment within 30 days, Choudhary said.

Two-Phase Development Timeline

The greenfield sites have been divided into two groups. The first group comprises Patna, Sonepur, Gaya, Darbhanga, Purnea, Saharsa, and Munger, which are slated for development in phase one. The second group, to be developed subsequently, comprises Sitamarhi, Chapra, Muzaffarpur, and Bhagalpur. The state Urban Development and Housing Department has announced that the zonal and master plans for the seven cities in the first group would be notified by 31 March 2027, and similar plans for the second group would be notified by 30 June 2027.

Financing Terms

HUDCO will provide term loans amounting to ₹1 lakh crore over a 5-year period. The agreement includes flexible repayment terms of up to 25 years and remains valid for 3 years, subject to annual review. The Chief Minister stated that in addition, the government expects nearly ₹6 lakh crore in private investment.

Next Steps

Officials said the draft plan for the new townships is expected by October–November 2026, after which detailed planning will begin. Once the master plans are published, the government will simultaneously begin land pooling, direct land purchases and land acquisition required for infrastructure and urban development projects. Officials said allowing these processes to run alongside implementation of the master plans would help ensure that the satellite townships are developed on schedule.