Gujarat signs ₹1 lakh crore HUDCO funding pact, with Dholera among priority projects
Gujarat has signed an MoU with state-owned lender HUDCO for up to ₹1 lakh crore in long-term financing for infrastructure — naming the development of Dholera as a greenfield smart city alongside Ahmedabad Metro expansion and new expressways.
Jun 17, 2026Infrastructure2 min read
The Gujarat government has signed an agreement with state-owned lender Housing and Urban Development Corporation Ltd (HUDCO) to secure long-term financing of up to ₹1 lakh crore for infrastructure, creating a major funding pipeline for metro rail expansion, expressways and urban development across the state — with the greenfield smart city of Dholera named among the priority projects.
The memorandum of understanding (MoU) was signed on Wednesday in Gandhinagar in the presence of Chief Minister Bhupendra Patel.
What the funding covers
The financing is expected to support a range of projects under the state's long-term development roadmap, including:
- Ahmedabad Metro Rail Phases 2 and 3
- Expressways
- Sports infrastructure
- The development of Dholera as a greenfield smart city
IIM Ahmedabad to support project planning
In a parallel development, the state government also signed an MoU with the Indian Institute of Management Ahmedabad (IIM-A) to provide technical and strategic support for upcoming infrastructure projects. Under the agreement, IIM Ahmedabad will undertake pre-feasibility studies, feasibility assessments, preparation of detailed project reports (DPRs) and impact evaluations for projects planned under the Viksit Gujarat 2047 programme.
The partnership is expected to help the government evaluate project viability, prioritise investments and improve execution outcomes for large infrastructure initiatives.
Source: The Hindu BusinessLine.