According to the terms of the agreement, HUDCO will provide a loan over the next three years in alignment with YEIDA's land acquisition plan, offering a competitive interest rate of approximately 8.2 per cent. The YEIDA CEO explained that the state government had granted the Authority an interest-free loan exceeding Rs 33 billion. As stipulated by the funding's terms, the Authority is required to contribute 50% of the funds from its own resources for the land acquisition process. To fulfill this requirement, the Authority has secured a corresponding loan from HUDCO.

The CEO indicated that HUDCO would disburse loans equivalent to the amounts withdrawn from the state government?s fund for land acquisition. For example, if Rs 2 billion is utilised from the state government?s fund, HUDCO will provide a matching loan amount. This process will continue for the duration of the land acquisition efforts.

YEIDA aims to acquire a total of 6,065 hectare of land through various methods, including mutual agreements (1,609 hectare), land acquisition processes (4,076 hectare), and reclamation (380 hectare). The acquired land is intended for the development of new sectors, civic amenities, and industrial cities, with an additional Rs 635 billion required for infrastructure development in these areas.